Maldives companies to sell stock in Sri Lanka
The agreement primarily focuses on enabling Maldivian companies to list their shares on the CSE.
Sri Lanka’s Securities and Exchange Commission (SEC) has signed an agreement with the Capital Market Development Authority of Maldives (CMDA) to facilitate cross listings of companies on the Colombo Stock Exchange (CSE).
The agreement primarily focuses on enabling Maldivian companies to list their shares on the CSE, providing them with access to a broader investor base and the robust capital market infrastructure of Sri Lanka. This initiative is expected to help Maldivian companies achieve more accurate stock valuations, addressing liquidity challenges they face domestically.
SEC Chairman Faizal Salieh highlighted the advantages for Maldivian companies, stating, “By listing on the CSE, Maldivian companies can adopt best practices from Sri Lankan listed companies, access a wider pool of investors, and leverage our capital market infrastructure.”
Salieh also mentioned opportunities for listing various debt instruments, including Sukuks, Sustainable Bonds, and Development Bonds, as well as the secondary listing of State-Owned Enterprises (SOEs).
CMDA Chairperson Aishath Zahira emphasised the broader scope of the Memorandum of Understanding (MOU), which includes mutual collaboration, capacity building assistance, and regulatory information exchanges.
“Under the MOU, we will explore new access to finance alternatives for local companies, harmonise regulatory frameworks, and integrate systems for cross-border trading activities. Improving the governance of listed companies is also a key area of focus,” Zahira said.
Following the signing of the MOU, the CSE held a series of one-on-one meetings with several Maldivian listed companies, including Amana Takaful Maldives Plc, Centurion Plc, Maldives Islamic Bank Plc, Maldives Transport and Contracting Company Plc, Dhiraagu Plc, and Maldives Tourism Development Corporation.
Both nations aim to create a conducive environment for sustainable growth, attract more investments, and enhance the prosperity of their capital markets and economies through this collaboration, the SEC stated.
