SEC and CSE Collaborate to Boost Market Growth by Expediting Listings

The Securities and Exchange Commission of Sri Lanka (SEC), in collaboration with the Colombo Stock Exchange (CSE), recently conducted an awareness session for Corporate Finance Advisors (CFAs) aimed at enhancing regulatory compliance and streamlining the listing process.

The forum brought together CFAs alongside senior officials from both the SEC and CSE to discuss regulatory expectations, identify common shortcomings in listing applications, and establish best practices to strengthen investor confidence and uphold market integrity.

Chairman of the SEC, Senior Prof. D.B.P.H. Dissabandara, highlighted the pivotal role of Corporate Finance Advisors in fostering market confidence beyond their traditional functions in facilitating listings, mergers, and acquisitions.

"Your screening process and due diligence directly support market confidence in addition to your key responsibilities," the Chairman said. "As a regulator, our main job is investor protection. Indirectly, your work facilitates that as well." He emphasized that the professional judgment and performance of CFAs are critical, as investors often base decisions on their assessments and recommendations.

CSE CEO, Mr. Rajeeva Bandaranaike, reinforced the importance of collaboration to improve market efficiency. "The objective is to completely revamp and enhance the overall listing experience for companies and issuers," he stated. "This is a journey we must undertake together with the community." He also noted the higher scrutiny required for public listings compared to bank financing, stressing the need for accurate and clean prospectuses to prevent post-listing issues.

Ms. Kanishka Munasinghe, Vice President – Listing, CSE, addressed recurring gaps in recent listing applications, particularly in litigation disclosure and legal due diligence. She outlined the CSE’s 2026 initiatives, including comprehensive prospectus preparation guidelines, a digital listing portal for enhanced transparency, and a commitment to seven-day review timelines once minimum requirements are met.

"Consult the CSE before structuring a complex issue," Ms. Munasinghe advised. "Any scenario can be accommodated within the listing and regulatory framework."

From a regulatory standpoint, Ms. Manuri Weerasinghe, Director – Corporate Affairs, SEC, stressed that CFAs are not merely transaction facilitators but gatekeepers of market credibility. She emphasized the legal obligation under Section 33 of the CFA Rules to verify every piece of information in prospectuses, noting that violations have led to enforcement actions, penalties, and public reprimands.

Ms. Nilupa Perera, Chief Regulatory Officer, CSE, highlighted the importance of thorough due diligence and educating issuers on post-listing obligations. "Even after your role ends, advise issuers on continuous listing requirements so that their securities are not transferred to the watchlist," she urged.

Mr. Suneth Perera, Acting Director – Supervision, SEC, reminded advisors of compliance requirements, including the mandatory submission of post-issue reports, quarterly financial statements signed by key executives, and annual business plan status updates by January 20th.

The session concluded with a panel discussion and interactive Q&A, enabling CFAs to seek clarifications and discuss practical challenges and solutions.

This awareness session marks a significant step in the SEC and CSE’s ongoing efforts to strengthen Sri Lanka’s capital market infrastructure. By fostering closer collaboration with Corporate Finance Advisors and implementing technological solutions like the digital listing portal, both institutions aim to create a more efficient, transparent, and investor-friendly listing environment.