Female leaders are determining the direction of the Colombo Stock Exchange (CSE), Sri Lanka’s central marketplace for equity and debt trading, and shaping the future of investment in the nation. They are among some of the growing number of women stepping into senior roles involving audit, oversight, compliance, strategy and regulation.
Growth the goal
Vindhya Jayasekera, appointed CEO earlier this year, aims to make the exchange an active enabler of national growth. ‘CSE is at an inflection point, looking to move beyond the usual equity and debt markets, to offer investors more diverse opportunities,’ she says. ‘CSE needs to play a stronger role as a key driver of growth and investor confidence.’
‘We can act as strategic advisers without jeopardising independence’
That expansion comes with heightened expectations for governance, transparency and risk mitigation. Jayasekera is accordingly intensifying the CSE push toward enhanced disclosure, ESG compliance and digital monitoring tools. ‘As Sri Lanka’s capital market continues to evolve, we are confident that these initiatives will ensure robust governance, improve financial literacy and promote a more dynamic trading landscape for the future,’ she says.
Risk restraints
To underpin investor confidence in the drive for national growth, CSE is undertaking ambitious reforms. Chief among them is the introduction of a central counterparty system designed to reduce systemic risk in securities settlement. ‘This upgrade will encourage greater market stability and investor confidence while aligning CSE with global best practices,’ Jayasekera says.
Overseeing the integrity of the securities settlement process – along with the rest of CSE’s systems – is Kushlani Coswatte, vice president of internal audit. She identifies emerging risks and recommends controls while maintaining the objectivity of internal audit demands. ‘Internal auditors must not accept management responsibilities when providing recommendations,’ she stresses. ‘As long as we refrain from undertaking such roles, we can act as strategic advisers without jeopardising independence.’
‘Rules must be effective, yet not excessive’
Coswatte’s audit team also reviews ESG compliance, evaluates cybersecurity risks during IT audits, and assesses third-party engagement frameworks. ‘Audits are carried out to review the availability of risk assessments prior to entering into service agreements,’ she says. ‘Evaluating the effectiveness of those agreements is key to ensuring that third-party risks are addressed.’
Protection
Equally focused on investor protection is Nilupa Perera, CSE’s newly appointed chief regulatory officer. With retail participation and public scrutiny both on the rise, she is clear about the balancing act that regulators must perform. ‘Balancing market integrity with practical, proportionate regulation is the focal challenge in any capital market regulatory role,’ she says. ‘We engage regularly with market stakeholders to obtain real-world insights. Rules must be effective, yet not excessive.’ She identifies agility, technological adoption and global alignment as key to regulatory success.
One of the standout initiatives Perera is in charge of is the adoption of the XBRL business reporting language standard, in collaboration with professional accountancy body CA Sri Lanka and the Securities and Exchange Commission (the country’s financial market regulator). ‘This will streamline the submission of financial statements and ensure effective dissemination of financial data to the market,’ she explains.
‘Meeting the profitability test can be challenging, so we’ve introduced alternatives’
Making sure that CSE-listed businesses operate transparently is the job of Kanishka Munasinghe, vice president of listings. Her division assesses prospectus disclosures and works closely with issuers to improve the quality of information shared with investors. ‘This ensures that investors have the required level of information to make informed decisions,’ she says.
Listing rules
Improving compliance outcomes among listed entities is an important focus for Perera. It involves addressing challenges related to board composition and the establishment of subcommittees in line with new governance rules. ‘Such requirements enable the directors of listed entities to meet their stewardship obligations with efficacy,’ she points out.
In charge of CSE’s requirements for newly listing businesses, Munasinghe says a gap analysis is conducted to assess potential issuers’ listing-readiness. ‘Meeting the profitability test can be challenging, so we’ve introduced alternatives such as revenue, market cap and positive operational cashflows,’ she says.
The development of new debt instruments, such as green, social, sustainability (GSS) and sustainability-linked bonds – a growing segment in the post-crisis economy – is part of Munasinghe’s remit. ‘We’ve seen strong interest in products like GSS-plus bonds and high-yield bonds,’ she says. ‘We’re continuously improving our listing rules to support such innovations.’
Capital markets are evolving, as are the people behind them. By tightening listing standards, improving investor education and modernising compliance systems, their work feeds into something larger: to keep the market functional, fair and transparent for those who rely on it.
