Sri Lanka’s stock exchange signs MoU with Korea Exchange to establish a collaborative relationship
Sri Lanka’s Colombo Stock Exchange (CSE) and Korea Exchange (KRX) has reportedly announced the signing of a Memorandum of Understanding (MoU) aimed at establishing a collaborative relationship focused on mutual development opportunities in the Sri Lankan and Korean capital markets.
Reports state that the MoU was signed by KRX Chairman Jiwon Jung and CSE Chairman Ray Abeywardena in Seoul on Monday (20) in the presence of Sri Lankan Ambassador to South Korea Manisha Gunasekara.
In a development that is of particular interest to the Sri Lankan capital market, the MoU is expected to pave the way for collaboration between the CSE and KRX in the areas of new product development in equity and financial derivatives, new technology, business strategy and post-trade technology and systems.
Speaking to mark the signing of the MoU, Jung has reportedly said: “Under the spirit of today’s MoU, KRX will utilize its experience and technology in market development to closely collaborate with CSE in facilitating further capital market growth of both countries.”
Commenting on the MoU, Abeywardena has said: “The MoU with KRX would assist in synergizing efforts on capital market development and business opportunities between the two countries. We are pleased to be working with KRX, which we believe strengthens our avenues for cooperation and mutual development with leading exchanges and capital markets.”
KRX presently has over 2,000 listed securities and contributes to the development of the Korean economy by providing corporations with capital for growth, and offering individuals opportunities for wealth accumulation. With a population of approximately 50 million, a GDP of US$ 1.6 trillion and GDP per capita of $32,800, Korea is one of the largest and most prominent consumer markets in Asia.
Korea Stock Exchange, Korea Securities Dealers Automated Quotation and Korea Options and Futures Exchange consolidated in 2005 to establish KRX under the Korea Stock and Futures Exchange Act. The KOSPI market, which is a benchmark stock market of Korea, has listed global corporations such as Samsung Electronics, Hyundai Motor, POSCO and LG Electronics.
The CSE is the nucleus of Sri Lanka’s capital market as the licensed operator of the stock market. The CSE is regulated by the Securities and Exchange Commission of Sri Lanka and was incorporated as a company limited by guarantee in 1985.
The CSE and KRX MoU would further increase mutual development opportunities. The fact that the MoU would pave the way for collaboration between the CSE and KRX in the areas of new product development in equity and financial derivatives, new technology, business strategy and post-trade technology and systems would undoubtedly help local as well as foreign businesses looking at investing in the CSE.
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