SEC Chief says all ready for SOE listings, ball in Govt.'s court

Says Catalyst Board ready, only Govt. needs to decide to list SOEs Encouraged that Govt. has shed privatisation misconceptions Points out President AKD's acknowledgment that SOEs must be listed amidst borrowing limitations Shows JKH's Cinnamon Life as example of capital market potential Says JKH raised majority of funds for $ 1.4 b Cinnamon Life development from capital market Asks if private sector can, why can't Govt.: Cinnamon Life investment half the value of ongoing IMF program Says settlement cycle reforms ongoing Claims never in the past were market fundamentals so strong

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SECURITIES and Exchange Commission (SEC) Chairman Senior Prof. Hareendra Dissabandara recently said the necessary groundwork is complete to list State-owned enterprises (SOEs) on the Colombo Stock Exchange (CSE).

Speaking at the Invest Sri Lanka Forum in Singapore last week, he said that the infrastructure is ready and that the Catalyst Board, set up specifically for SOE listings, is in place.

"Targeting SOEs, we have done many things, and our infrastructure is there. Our Catalyst Board is ready, and it is dedicated for SOE listings. I think almost all the requirements are fulfilled. Now the only thing is for the Government to be ready and think about listing," he told investors at the Invest Sri Lanka Forum hosted by the SEC and CSE in Singapore.

Senior Prof. Dissabandara pointed out that the SEC has held multiple rounds of discussions with policymakers, including a meeting with the Minister on the same morning of the Forum.

He noted that in the past, Sri Lankan politicians and policymakers were hesitant to endorse SOE listings, fearing that such moves would be equated with privatisation.

"In the past, politicians and policymakers were afraid to openly say they were going to list SOES in the capital market because they thought it was privatisation.

Now, luckily, this Government has understood the importance of capital formation through the capital market.

Even the President (Anura Kumara Disanayake) has openly mentioned that SOEs must come through a holding company and be listed. Considering our borrowing capabilities at the moment, there is no other option," the SEC Chief said.