CSE Chief declares 2017 year of implementation

Thursday, 8 December 2016 00:01 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

Optimistic Capital Market Chief yesterday said they would focus more on implementing necessary mechanisms to make the Colombo Stock Exchange (CSE) ready by 2017.

“We expect more implementations next year and make CSE ready for the future,” CSE Chairman Vajira Kulatilaka said yesterday.

Noting difficult times for markets, Kulatilaka said the CSA is geared to face challenges as it moves into the next year.

Kulathilaka said he was hopeful of achieving the set targets for next year, to convert the CSE into a competitive and advanced capital market in the rejoin.

“We would like to implement the central counterparty (CCP) system as we planned. All the work is done now. We want to implement the CCP with the funding that we are going to get from various sources,” Kulathilaka said.

Speaking to the Daily FT, CSE Chief Executive Officer Rajeeva Bandaranaike said the CSE is working closely with the Securities and Exchange Commission (SEC) to implement the CCP, which would help Sri Lanka leapfrog once again and bring the capital market up to international standards.

Approval of the new SEC Act and implementation of CSE infrastructure were highlighted as major roadblocks to implement the CCP he said.

“All in all, we hope by early 2018 the CSE will be in a strong position, with world class platforms to cater to market players,” he added. Bandaranaike however, emphasised that it was important to improve market sentiments along with the infrastructure.

The prevailing high interest rate regime has shifted most retail investors, leaving the equity market in a dull situation.

“The macro factors also need to support the market activities. We need more active participation from high net worth, institutional and retail investors,” he noted.

He asserted that the listing of State-owned enterprises next year, as promised by the Government, would also boost the activities of the CSE.

“It’s not privatising, but listing a stake of the organisation. This will give confidence to retail investors as they are familiar with these institutions and offer a good variety,” Bandaranaike explained.