SEC Chairman Faizal Saleh emphasized the benefits of this collaboration, stating that it will enable Maldivian companies to adopt best practices followed by Sri Lankan firms and attract a broader investor base.
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In a significant development for Maldivian businesses, the Capital Market Development Authority (CMDA) and the Securities and Exchange Commission (SEC) of Sri Lanka have signed a Memorandum of Understanding (MoU) to facilitate the listing or cross-listing of Maldivian companies on the Colombo Stock Exchange (CSE). This landmark agreement not only opens new opportunities for Maldivian companies to list on the CSE but also promotes collaboration between the capital market regulators of both countries.
The MoU between the CMDA and SEC is a strategic move aimed at enhancing the capital markets of both nations. By enabling Maldivian companies to list on the CSE, the agreement will foster closer ties and information exchange between the two regulatory bodies. This cooperation will ensure that the relevant rules and regulations are jointly implemented, providing a robust framework for cross-border listings.
SEC Chairman Faizal Saleh emphasized the benefits of this collaboration, stating that it will enable Maldivian companies to adopt best practices followed by Sri Lankan firms and attract a broader investor base. He added that the agreement would help Maldivian companies avoid liquidity constraints and secure better prices for their stocks.
The MoU also paves the way for the secondary listing of various financial instruments, including sukuk, sustainable and development bonds, and government-owned companies. This diversification will provide Maldivian companies with new avenues for raising capital and attracting investment.
CMDA Chairperson Aisha Zahira highlighted the agreement's role in strengthening corporate governance in Maldivian companies. This emphasis on improved management practices will help Maldivian companies become more competitive and resilient in the global market.
As part of the new MoU, the CSE has already held separate meetings with several prominent Maldivian companies. These include:
- Aman Takaful
- Centurion Plc
- Maldives Islamic Bank
- MTCC
- Dhiraagu
- MTDC
These discussions aim to explore the potential for listing and identify opportunities for growth and investment.
The MoU between the CMDA and SEC marks a significant step forward in enhancing the capital markets of both Maldives and Sri Lanka. By enabling Maldivian companies to list on the Colombo Stock Exchange, the agreement will provide new opportunities for growth, attract more investors, and strengthen corporate governance. This collaboration promises a brighter future for Maldivian businesses, offering them the tools and support they need to thrive in an increasingly competitive global market.
