The Securities Exchange Commission (SEC) has approved the creation of a separate transitional listing board called the Catalyst Board to enable the listing of State-owned Enterprises(SOEs), SEC Chairperson Faizal Salieh said.

In their annual review, Salieh said that In support of the Government’s policy on reforms in SOEs, SEC has approved a separate transitional listing board to enable the listing of SOEs.

He said this is a critical step towards progressively bolstering market liquidity and promoting transparency in the SOE sector.

“Listing SOEs on the CSE offers many benefits for the entities in terms of better governance, transparency and investor interest,” he added.

Moreover, SEC Director General Chinthaka Mendis said that the entry by SOEs into the capital market will benefit SOEs in numerous ways.

He added that the SEC has already approved the rules applicable for SOE listings and the Colombo Stock Exchange has a separate transitionary Board called the ‘Catalyst Board’ to accommodate such SOE’s. 

Further, he said that the Infrastructure Bonds Listed on the CSE would attract the private sector participation in infrastructure projects. 

“Such bonds may be issued by Government agencies, municipal councils, local government councils, etc.” he added.

The All Share Price Index (ASPI) witnessed a growth of over 25% in comparison to the year 2022. The rebounding of the ASPI helped erase much of the losses that were recorded in the year 2022. 

Similarly, the S&P SL 20 index ended the year on a positive note with a growth rate of over 16%. On the contrary, daily average turnover dropped to Rs. 1.69 billion in the year 2023. 

However, the market remained in the forefront in capital formation as it helped to raise Rs. 56.7 billion in the year under review.