CSE Targets Record Rs. 200 Billion in Capital Raising as New Investment Products Take Shape
COLOMBO, October 28, 2026 — Capital raised through the Colombo Stock Exchange (CSE) could reach a record Rs. 200 billion this year, Chief Executive Officer Rajeeva Bandaranaike said, as the exchange prepares new investment products and infrastructure reforms to deepen Sri Lanka’s capital market.
The CSE has mobilised Rs. 160 billion through debt, equity and rights issues so far in 2026, approximately 30% above the Rs. 123 billion raised during the whole of 2025.
The total is now Rs. 15 billion below the previous record of Rs. 175 billion set in 2024. Reaching Rs. 200 billion by year-end would exceed that record by approximately 14%.
Speaking at the Institutional Investor Forum jointly organised by the Securities and Exchange Commission of Sri Lanka (SEC) and the CSE, Bandaranaike outlined plans to broaden financing options, attract issuers and increase investor participation.
He said the exchange had established a dedicated commercial division to engage prospective issuers, shifting towards a more active approach to securing listings. The division is currently working with a base of approximately 800 companies.
However, he acknowledged that exchanges worldwide face competition from alternative financing sources, making it increasingly challenging to attract new listings.
Sustainable financing has become a significant component of the CSE’s debt market. Green, blue, social, sustainability and other thematic bonds, collectively described as GSS+ bonds, accounted for nearly 40% of debt capital raised in 2025.
Debt initial public offerings raised Rs. 113 billion through 22 debenture issues last year, up 19% from 2024. Seven issues were conducted under the GSS+ framework, raising more than Rs. 40 billion.
The exchange plans to introduce an environmental, social and governance index before the end of 2026, followed by exchange-traded funds early next year.
Bandaranaike also encouraged market participants to use existing frameworks for real estate investment trusts, stock borrowing and lending, and regulated short selling. He said these products could help intermediaries attract different client groups and develop additional advisory services and revenue sources.
Infrastructure initiatives include implementing XBRL for corporate disclosures, a central counterparty system to reduce post-trade risk, upgraded market surveillance, modernisation of the Central Depository Systems (CDS) platform and greater use of application programming interfaces.
Addressing concerns about delays in opening investor accounts, Bandaranaike said the CDS had already decentralised account opening and introduced a mobile application supporting instant onboarding. He urged brokers to accelerate their internal processes while complying with Financial Intelligence Unit requirements.
He highlighted emerging digital connections between financial institutions and the stock market, including a brokerage partnership allowing customers to access market services through a commercial bank’s application.
The CSE is also ready to establish a derivatives market, subject to regulatory approval, and is exploring multi-currency trading and additional market segments through Port City Colombo.
Separately, the exchange has partnered with India’s National Commodity and Derivatives Exchange to jointly respond to a request for proposals for a multi-asset-class exchange.
Bandaranaike said the CDS had submitted a proposal to the Public Debt Management Office to provide depository services for government debt securities.
He added that the CSE had strengthened its governance and institutional framework in preparation for eventual demutualisation, with a model identified and commercialisation efforts under way.
Broadening investor participation remains another priority. Investor education programmes conducted by the CSE, SEC and stockbrokers had directly reached approximately 49,000 people by September, while a wider branding campaign is scheduled to begin in January 2027.
Bandaranaike said intermediaries would play a central role in turning that interest into lasting investment relationships, while ensuring fair treatment and helping investors understand the risks involved.
