CSE & SEC Forum: Scaling SOEs via Capital Market Integration 📈

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) convened over 45 State-Owned Enterprises (SOEs) to discuss transitioning toward capital market funding to reduce Treasury reliance and enhance governance. • Strategic Objectives The initiative aims to provide SOEs with alternative funding pathways for mid-to-long-term growth while improving transparency and operational efficiency. Key focus areas include reducing the burden on public finances and attracting institutional investors. • Market Performance & Capacity • Between 2020 and 2025, listed entities raised Rs. 560.58 Bn through debt, equity IPOs, and rights issues. • The investor base has seen significant growth, with CDS accounts recently surpassing the 1 million threshold. • 2025 saw 25 new listings, including 6 companies, utilizing diverse instruments like Blue, Green, and Social Bonds. • Key Mechanisms for SOEs • Catalyst Board: A flexible entry point with relaxed regulations specifically designed for SOE integration. • Equity & Debt: Options for partial listing where the State retains control while allowing public and employee participation via ESOP schemes. • Governance: Emphasis on regular financial reporting to build investor trust and bridge existing governance gaps. • Economic Impact Integration is viewed as a catalyst for economic transformation, deepening market liquidity, and streamlining the quality of essential services provided by the state sector.