Sri Lanka’s Securities and Exchange Commission promotes new investment options

Sri Lanka’s Securities and Exchange Commission promotes new investment options

Sri Lanka’s Securities and Exchange Commission (SEC) is reportedly engaged in promoting several new investment options, some of which are first-of-their-kind in Sri Lanka in a bid to further promote capital market development.
SEC Chairman Viraj Dayaratne PC has told the Daily FT that the SEC has approved in principle Special Purpose Acquisition Companies (SPACs) with the relevant framework in place.
Explaining SPACs, he has further been quoted as saying, “A sponsor (reputed individual or company) lists a shell company with an IPO. Funds raised (from accredited investors initially) will be utilised to acquire willing unlisted companies. CSE has been tasked to come with the rule/guidelines.”
The SEC is also promoting ‘over-the-counter’ trading of paper gold products and the framework has already been approved in principle.

OSL take:

Sri Lanka’s stock market has seen quite an impressive positive movements this year along with several slow moving days indicating growth potential in the economy. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. The SEC’s move to promote new investment options would further build and promote Sri Lanka’s investments sector. With Sri Lanka poised to becoming a business hub in the South Asian region with its geographical positioning in the Indian ocean region and the positive economic trends, foreign businesses/investors could explore new opportunities in Sri Lanka’s investment market.

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Article Code : VBS/AT/20210427/Z_6

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