CSE says keen interest from Kurunegala based SMEs to explore capital-raising through stock market

From left: Mahaweli Coconut Plantations Managing Director and Executive Non-Independent Director J.F. Fernandopulle, Merchant Bank of Sri Lanka and Finance Manager – Corporate Advisory and Capital Markets Dishan Vitharanage, CSE Senior Vice President – Commercial Punyamali Saparamadu and CSE CEO Rajeeva Bandaranaike

The Colombo Stock Exchange (CSE) hosted an issuer forum recently at “The Epitome”, Kurunegala, titled “ ” for business owners in the Wayamba province. 

It provided guidance on exploring effective capital-raising avenues, specifically through listing on the Empower and Diri Savi Boards. These boards cater to SMEs across a wide range of sectors, including agribusinesses, livestock, energy generation, ICT, and tourism-related ventures. Industry experts including CSE representatives led panel discussions and interactive sessions.

Addressing the gathering, CSE CEO Rajeeva Bandaranaike said: “A listing offers substantial benefits to a company, from raising much needed capital to enhancing its business stature, fostering sound governance, sustainable practices, and enabling wealth creation for shareholders through an IPO or an introduction.”

“A listing on the CSE involves a mindset shift that leverages these advantages while maintaining control of your company and optimising the debt-to-equity mix. SMEs now have the opportunity for market-based fund raising especially since the CSE has broadened its listing criteria through the Empower Board, making capital more accessible,” Bandaranaike added.

Merchant Bank of Sri Lanka and Finance Manager – Corporate Advisory and Capital Markets Dishan Vitharanage conducting a session on “Capital Mobilisation through the CSE” said: 

 “When a business seeks to expand, the conventional route to secure funds typically involves acquiring loans. However, an alternative and advantageous method is to list the company on a stock exchange, such as the CSE, and raise capital by issuing shares to the public.” 

He went on to say, “This approach offers numerous benefits: it provides access to cost-effective funding, boosts the company’s corporate profile and public visibility, and fosters good governance practices and operational efficiency.”

The ISB Executive Director/CEO Neelakanth Wanninayake, highlighted in his address, “Stakeholder consultations for the Industry Policy highlighted that SMEs face significant challenges accessing diverse financial instruments. To address this, ISB advocates for policy measures to introduce varied financial options for business expansion. In collaboration with the CSE, ISB is supporting Kurunegala SMEs in becoming listed companies. This initiative aims to foster a corporate culture, enhance company profiles, and streamline management, positioning Kurunegala’s dynamic economy to produce globally competitive firms.”

The forum also featured a panel discussion titled “Journey Towards Listing and Life after Listing” including Dishan Vitharanage, Rajeeva Bandaranaike, Mahaweli Coconut Plantations PLC Managing Director and Executive Non-Independent Director J.F. Fernandopulle and with CSE Senior Vice President – Commercial Punyamali Saparamadu serving as the moderator. The discussion proved to be an interactive with many participant questions and clarifications.

Following the panel discussion and a Q&A session, attendees reported finding the event valuable for its insightful perspectives.