• 3 Maldivian companies show interest in CSE’s Multi-Currency Board
• CSE, CMDA collaborate to encourage dual listings from Maldives to SL
• SEC aims for more foreign listings despite lack of new MoUs in the pipeline

Following the Memorandum of Understanding (MoU) entered into between the Securities and Exchange Commission (SEC) of Sri Lanka and the Capital Market Development Authority (CMDA) of the Maldives, around three listed Maldivian companies have expressed an interest in listing on the Colombo Stock Exchange’s (CSE) Multi-Currency Board. 

Speaking to The Sunday Morning Business, CSE Chief Executive Officer (CEO) Rajeeva Bandaranaike revealed that subsequent to the MoU signed between the SEC and CMDA in late July, the CSE, together with the Maldives Stock Exchange (MSE) and CMDA, had engaged in one-on-one meetings with all companies listed on the MSE to encourage them to list on the CSE’s Multi-Currency Board.

Elaborating further, he stated: “We had one-on-one discussions with all listed companies. We are continuing to have follow-up discussions with the idea of encouraging these Maldivian companies to dual list in Sri Lanka.” 

Bandaranaike stated that subsequent to such initial discussions, around three Maldivian companies had already expressed an interest in listing on the CSE and that they would accordingly continuously engage with these companies.

Speaking to The Sunday Morning Business, SEC Deputy Director General Tushara Jayaratne reiterated that following the MoU entered into with the CMDA, the CSE had met with several Maldivian companies in order to encourage them to list on the Multi-Currency Board of the CSE.

He further stated that in terms of the Listing Rules of the CSE, in order to facilitate the listing of a foreign company on the Multi-Currency Board, it was necessary for the SEC to enter into an MoU with capital market regulators of the respective companies. 

As such, this was the purpose of the MoU with the CMDA. 

While admitting that the CSE would look to enter into similar MoUs with foreign capital market regulators, Jayaratne conceded that there were no such plans in the pipeline at present.

Section 10 of the Listing Rules of the CSE states that the capital market regulator of the domestic market (where the companies have the primary listing) shall enter into an appropriate bilateral agreement with the SEC, which provides adequate arrangements for mutual assistance and exchange of information for the purpose of enforcing and securing compliance with the laws and regulations of that jurisdiction and Sri Lanka.

On 21 July, the CSE entered into a landmark MoU with the CMDA in Malé, which primarily covered secondary listings by Maldivian companies on the CSE, and also extended to mutual collaboration, capacity-building assistance, and regulatory information exchanges between the two capital market regulators to ensure compliance with laws and regulations across both jurisdictions.