CSE and USAID hold Issuer Forum to promote capital-raising for SMEs in Jaffna

USAID Activity Team Lead Juan Forero 

CSE Senior Vice President Marketing Niroshan Wijesundere  

• Over the past 6 years listed entities have raised over Rs. 480.45 billion via stock market

The Colombo Stock Exchange (CSE) recently organised a forum titled “Redefining the Trajectory of Your Business” in collaboration with the U.S. Agency for International Development (USAID) CATALYZE Sri Lanka Private Sector Development (PSD) Activity. 

The event held at North Gate Hotel – Jaffna, aimed to provide small and medium enterprises (SMEs) with crucial insights into capital-raising opportunities available at the CSE, specifically through listing on the Empower and Diri Savi Boards.

These boards offer dedicated listing platforms for SMEs, focusing on sectors like agribusinesses, livestock, energy generation, ICT, and tourism-related ventures. The program, tailored to the needs of companies in Jaffna, provided guidance on exploring capital-raising avenues effectively through panel discussions and interactive sessions with industry experts, investment advisors, CSE representatives, and USAID CATALYZE PSD representatives.

Delivering the opening remarks, CSE Senior Vice President Marketing Niroshan Wijesundere said: “We see potential in the northern region for businesses to thrive. We are conducting this forum with the aim of creating awareness and are glad to be able to provide this opportunity to MSMEs to further support them in their objectives to raise capital.”

Wijesundera also added, “Micro- small and medium sector enterprises in northern Sri Lanka could be seen as a driving force for inclusive economic growth, employment generation and poverty reduction, and overall development of the north. Given its proximity to India and looking at export markets, there is immense potential for SMEs to expand their businesses and capitalise on numerous opportunities of listing on the CSE, as an alternative means of raising capital to unlock these prospects. Over the past six years, listed entities have raised over Rs. 480.45 billion via the stock market. It is evident that listed entities are utilising the capital markets for the growth of their businesses.”

“The United States supports the free flow of capital to help grow Sri Lanka’s economy,” USAID Director of Economic Growth Christopher Powers said in a statement. “Through CATALYZE PSD, USAID has supported companies in the food, agricultural, and ICT sectors in the northern region. We also encourage other companies to explore funding options, whether through the Colombo Stock Exchange or by engaging with USAID PSD for alternative opportunities.”

Conducting a session on ‘Capital Mobilisation through the CSE’, Acuity Stockbrokers Ltd. Assistant Vice President Vasantha Kumar stated, “SMEs in Sri Lanka usually maintain an annual turnover not exceeding Rs. 750 million. These enterprises need further funding for expansion, sustainability, or to bring new products to market. The CSE offers a platform for SMEs to raise capital by listing their shares.”

He further added, “In addition to capital raising, a listing will offer a plethora of benefits for companies, such as enhanced image, attracting and retaining quality talent, improvement in corporate governance as well as access to strategic investors. Several successful SME IPOs have taken place recently, highlighting the diversity and potential that can be realised, and opportunities for growth available within the Sri Lankan market through the CSE. These include companies such as Kapruka Holdings PLC, Windforce PLC, Prime Lands Residencies PLC, Exterminators PLC, EML Consultants PLC, and Alpha Fire Services PLC, across various boards such as the Main Board, Diri Savi Board, and the Empower Board.”

The forum featured a panel discussion titled “The Journey Towards Listing and Life after Listing,” with PSD Inclusive Finance Director Jude Fernando, Acuity Stockbrokers Ltd. Assistant Vice President Vasantha Kumar, Atarah Capital Managing Director Rohan Senewiratne, V-Share Ventures Ltd. Consultant Nadarajah Gunabalan, CSE SVP – Commercial Punyamali Saparamadu, with CSE Jaffna Branch Manager Shanmukananthan Sabananthan serving as the moderator. Attendees appreciated the discussion for its helpful insights.