CSE’s MoU with LSEG will immensely strengthen our debt market offering: Ray

Standing from left: Colombo Stock Exchange Chairman Ray Abeywardena, Securities and Exchange Commission of Sri Lanka Chairman Ranel T. Wijesinha, Central Bank Governor Dr. Indrajit Coomaraswamy, UK Minister of State for Asia and the Pacific Mark Field, High Commissioner of Sri Lanka in the UK Manisha Gunasekara and LSEG Group Head of Shared Services Centres and LSEG Technology Sri Lanka Head Dee Liyanwela

London Stock Exchange Group (LSEG) recently announced the signing of a landmark Memorandum of Understanding (MoU) with the Colombo Stock Exchange (CSE) to facilitate further collaboration between the two Groups. 

The MoU will enable LSEG to support the CSE in the development of the domestic debt market including the market for offshore Sri Lankan rupee bonds; LSEG Technology support in upgrading capital market infrastructure and delivering technology solutions to the CSE; FTSE Russell guidance in capital market classification and index inclusion; and improving links to international Central Securities Depositaries (iCSD). 

The signing ceremony, held at LSEG’s office in London, was attended by UK Minister of State for Asia and the Pacific Mark Field; High Commissioner of Sri Lanka in the UK Manisha Gunasekara, Central Bank of Sri Lanka Governor Dr. Indrajit Coomaraswamy, Securities and Exchange Commission of Sri Lanka Chairman Ranel T. Wijesinha, CSE Chairman Ray Abeywardena, CEO Rajeeva Bandaranaike and LSE CEO Nikhil Rathi, who is also LSEG Director of International Development, and Shared Services Centres Group Head and LSEG Technology Sri Lanka Head Dee Liyanwela.

Following is the speech given by CSE Chairman Ray Abeywardena at the MoU signing ceremony. 

The Colombo Stock Exchange is honoured to be part of this historic occasion, as we mark the first-ever offshore dollar bond offering by Sri Lanka in London. The LSE’s far-reaching and diverse investor base will now have an opportunity to directly engage themselves in Sri Lanka’s Capital Markets. 

Sri Lanka too stands to benefit tremendously through the access and exposure that a listing on the LSE will provide. The development has also opened many new avenues for cooperation between the CSE and the LSE.

This event marks a momentous occasion for the Colombo Stock Exchange, as we sign the MoU to formalise our partnership with the London Stock Exchange in this venture. As you all are aware, our two institutions share an excellent working relationship built on trust and mutual respect, which has paved the way for successful engagements in multiple initiatives over the years. 

To me, the endeavour that we are jointly embarking on today, is an extension of that relationship and I am truly pleased to have the LSE as our partner in this venture as well.

This marks the first step of the process that will facilitate the dual listing of dollar bonds issued by the Government of Sri Lanka, on both the LSE and the CSE. Whilst the end result of a dual listing would certainly be the pinnacle of this endeavour, the process involved in terms of preparing the CSE to gear up for this challenge, is also set to be a truly transformative experience for our exchange. The support and guidance of our partner the LSE, in our preparation is greatly appreciated. 

Achieving the objectives set out in this MoU will immensely strengthen our debt market offering, as a gateway to a global exchange with truly world class regulation, technology and depth of market participants. This initiative provides investors the ability to invest in securities that are also listed in one of the most prominent markets in the world, though Sri Lanka, which in turn would propel the CSE to greater heights and increase its visibility both locally and internationally.  

The collaboration achieved through this MoU is also set to broaden the scope of our CDS, enabling it to grow technologically and operationally, to establish links with International Central Securities Depositaries. 

Access to LSE’s trading and post trade state-of-the-art technology and processes will also help achieve our long-term objective of converting a part of our technical operations into a cloud-based and managed services driven model. This would offer us significant cost efficiencies making us more competitive regionally and enabling us to focus on improving and developing our core business as a capital market infrastructure provider.

Achieving FOOTSIE classification for the Sri Lankan market is another objective of the MoU that the CSE is desirous of achieving, for which, we look forward to the guidance of the LSE in this endeavour too.

In conclusion I would like to state that LSE is an organisation that has always believed in the potential of Sri Lanka and our capital markets and has amply demonstrated its commitment to Sri Lanka through its Direct investments. The developments celebrated today are testament to the fact that LSE continues to believe in the Sri Lankan story.

I will be failing in my duty if I do not acknowledge the efforts, leadership, commitment and dynamism displayed by DEE, Priyanka, The Governor, Chairman of the SEC Sri Lanka and Rajeeva who worked tirelessly to make this a reality that we are witnessing today.