Page 41 - CPM Sri Lanka-Chartered Manager-Sept. 2021

THE INSTITUTE OF CHARTERED PROFESSIONAL MANAGERS OF SRI LANKA
JANUARY 2021

c. We are finalizing the identification of a global If we are able to successfully communicate this vision
exchange to join with us as a partner in the and strategy behind developing such an eco-system
venture. This will enhance the offshore exchange and execute with the right partners, it will create the
as a platform by which entities can easily access impetus for global talent to relocate presence to Sri
global capital and raise its profile in the global Lanka. With the right policies and a strategic roll-out
arena plan, the offshore exchange can become the rationale
for a much more vibrant city to develop, catering to the
d. The partnerships and eco-system we expect requirements of HNIs with the benefits trickling down
to create within Port City Colombo will raise its to the wider economy, onshore.
profile as a viable destination for capital raising
The CSE is currently undertaking the second phase
For the development of successful capital markets, of its transformational digitalization drive.
ancillary sectors such as investment banking, With an exchange focused on more advanced
accounting and legal services etc. should also be markets, what aspects could be introduced
developed. Have you studied the strengths and going beyond this second phase?
weaknesses of the current state of these sectors Rajeeva: We are definitely making long strides
to address opportunities for the future? in the right direction. Our digitization efforts have
Purasisi: The success of our venture is dependent already brought about strong results, with a growing
upon the vibrancy of the broader eco-system within number of investors participating via our mobile
Port City Colombo. We are aware that the presence platforms. Further, the more recent introduction of
of an exchange alone will not lead to success or the DVP (Delivery vs. Payment) is a significant step in
vision we have alluded to in our previous responses. reducing settlement risk and further improves investor
We are confident that our close collaborative efforts confidence in the exchange. The introduction of DVP
with the various stakeholders of Port City Colombo will also enables us to introduce more innovative financial
ensure that we attract the right global talent to the instruments, which both Investors and Issuers can
zone, which in turn will contribute to the development leverage. Going forward, our next major milestone
of a top-tier services sector (i.e. hospitals, retail, will be to finalize the demutualization process in
entertainment etc.) which will support the needs of collaboration with all the stakeholders concerned.
a highly discerning population comprised of both The above changes place CSE in a better position to
expatriates and Sri Lankans. be evaluated for an upgrade from a frontier market
What we anticipate to develop as a foundation is a to an emerging market. This would be a boon to the
successful offshore exchange which is positioned and local capital market, as a greater number of foreign
geared to generate significant sources of revenue institutional investors would be able to invest through
through the fees associated with the services provided, the exchange.
particularly to HNIs. These services will come from the While we are significantly investing in transforming
ability to launch innovative financial products, develop the CSE into a world class exchange, we also recognize
and trade new forms of products and be flexible the importance of establishing an offshore exchange
enough through amenable rules and regulations to within Port City Colombo, which is primarily focused
develop innovative frameworks. We expect this in on creating a regional hub for financial services. The
turn to lead to attracting the required high quality of benefits accrued from a successful venture will trickle
ancillary services brought by globally renowned service down to the wider economy and have a positive
providers. impact on our onshore exchange.

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