The Colombo Stock Exchange (CSE) is finalising plans to launch a dollar trading board, part of a broader strategy to develop Sri Lanka’s bourse into a regional capital markets centre and boost the inflow of foreign funds.
In July, Ray Abeywardena, chairman of the CSE, announced that the exchange had received regulatory approval to launch a dollar trading board for foreign investors by the end of the year. This would allow shares of listed firms to be quoted and traded in US currency rather than rupee.
According to the initial plans, only foreigners will be allowed to buy and sell shares on the new board, meaning non-resident and resident foreign currency account holders will be excluded.
The new board should create opportunities for regional companies to trade on the CSE, with the platform to be opened up to domestic firms at a later unspecified date, Abeywardena told local media.
While some trade and listing restrictions are in place, officials have said that multinational companies operating in Sri Lanka may list on the dollar board.