Sri Lanka stock exchange renews demutualization push

• CNL Reporter
• March 20, 2025
• Business News
• Sri Lanka stock exchange renews demutualization push
• 0 Comments

Sri Lanka’s Colombo Stock Exchange is making a renewed push to demutualize the bourse in to a limited company in 2025, which can lead to international partnerships in the future, Chairman Dilshan Wirasekera said.

The CSE is now an entity limited by guarantee with brokers as members where profits are not distribute and bill has to be passed in the parliament with the backing of the government to demutualize into an ordinary limited company.

Under a draft bill, the model considered is for broker members to get 60 percent and a market development funder under trustees to get 40 percent, or a 30 to 70 split.

After demutualization, half the holdings should be sold down, which can be listed or used to attract a foreign exchange as a partner.