SEC, CSE seek faster, cleaner listings through closer advisor collaboration

Prof. D.B.P.H. Dissabandara

Sri Lanka’s Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) have stepped up efforts to expedite new listings while tightening the accountability standards for the corporate finance advisors, as the regulators seek to strengthen investor confidence and market integrity.
The SEC and CSE this week held an awareness session for the corporate finance advisors, aimed at improving regulatory compliance and streamlining the listing process, bringing together the senior officials from both institutions and market intermediaries.
SEC Chairman Senior Prof. D.B.P.H. Dissabandara said the corporate finance advisors play a critical role in market credibility that extends beyond facilitating the listings, mergers and acquisitions.
“Your screening process and due diligence support market confidence directly,” he said, adding that investor protection and confidence are central to the regulator’s mandate and are indirectly reinforced through the advisors’ professional judgment.
Prof. Dissabandara warned that the reputation of Sri Lanka’s capital market hinges on the quality of assessments and recommendations made by the advisors, which the investors rely on when making decisions.
CSE Chief Executive Officer Rajeeva Bandaranaike said closer collaboration with market participants is essential to improve efficiency and reduce the delays in listings.
“The objective is to completely revamp and improve the overall listing experience for companies and issuers,” he said, noting that the public listings require a higher level of scrutiny than bank financing because they involve public funds.
“If the prospectus is not clean and accurate, we are going to face problems. We do not want companies entering the watchlist within months of listing,” he added.
Highlighting operational gaps, CSE Vice President Listing Kanishka Munasinghe said the recent applications have shown weaknesses in litigation disclosure and legal due diligence. She said disclosure requirements have been expanded to assess not only the financial impact but also the operational continuity and licensing implications.
Munasinghe outlined several initiatives planned for 2026, including comprehensive prospectus guidelines, a digital listing portal to improve transparency and a commitment to seven-day review timelines once the minimum requirements are met. She urged the advisors to engage early with the CSE when structuring complex issues.
From the regulatory side, SEC Director Corporate Affairs Manuri Weerasinghe underscored that the corporate finance advisors act as the “gatekeepers” of the market and face regulatory consequences for inadequate due diligence.
She said Section 33 of the Corporate Finance Advisor Rules requires the advisors to verify all information disclosed in the prospectuses, warning that failures constitute violations. Weerasinghe noted that the recent enforcement actions have included penalties and public reprimands for breaches.
CSE Chief Regulatory Officer Nilupa Perera said weak due diligence has led to application rejections in the past, sometimes requiring input from other regulators such as the Central Bank and insurance authorities. She also urged the advisors to educate the issuers on the ongoing disclosure and compliance obligations after listing to avoid the securities being moved to the watchlist.
SEC Acting Director Supervision Suneth Perera reminded the advisors of the mandatory post-issue reporting requirements, including the submission of quarterly financial statements with proper sign-offs and annual business plan status updates by January 20.
The SEC and CSE said the initiative forms part of a broader push to strengthen Sri Lanka’s capital market infrastructure, with closer regulator-advisor collaboration and digital tools expected to support faster, more transparent and investor-friendly listings.