With a distinguished career spanning leadership roles in financial services and capital markets, Rajeeva Bandaranaike is a seasoned executive with a proven track record of driving organisational growth and strategic transformation.
As the Chief Executive Officer of the Colombo Stock Exchange (CSE) since 2013, he has played a pivotal role in enhancing market infrastructure, fostering investor confidence, and aligning Sri Lanka’s capital market with global best practices.
Rajeeva’s expertise extends across strategic planning, financial management, and team leadership, complemented by an impressive academic background, including an MBA from the University of Southern Queensland, a Bachelor of Laws (LLB) from the Open University of Sri Lanka, and a Postgraduate Diploma in Marketing from the Chartered Institute of Marketing (CIM). His extensive experience includes previous leadership roles as CEO of Orient Finance PLC and People’s Merchant Finance PLC, as well as serving as the Assistant General Manager for Clearing and Settlement at the CSE.
Under his leadership, the CSE has introduced innovative capital-raising mechanisms, expanded investor participation, and implemented regulatory enhancements to strengthen market integrity.
In an exclusive conversation with Global CEO Magazine, Rajeeva shares his insights on the latest trends in Sri Lanka’s capital markets, the role of the CSE in supporting businesses, and the transformative impact of technology and regulatory advancements on the stock exchange.
Q. How would you describe the current trends in Sri Lanka’s capital markets, and what key factors are influencing market movements?
Sri Lanka’s capital market, particularly the equity market, has experienced a strong resurgence since the last quarter of 2024, following the Presidential and General Elections. Market activity has increased significantly, with daily average turnover rising from approximately Rs. 1.4 billion per day during the first nine months of 2024 to Rs. 4.3 billion per day in the last quarter of the year.
By the end of 2024, the All Share Price Index (ASPI) had recorded a year-to-date growth of 49.5%, while the S&P SL 20 Index had grown by 58.4%. This rally has continued into 2025, with the ASPI up by 4.9% year-on-year as of February 7th, and daily average turnover reaching Rs. 6.5 billion in January 2025.
The market surge has been largely driven by domestic investors, who account for approximately 85% of total trading volumes. This strong participation has contributed to an overall market capitalisation increase of over Rs. 2 trillion in investor wealth since 2022.
Several factors are influencing this growth:
• A low interest rate environment
• Exchange rate stability
• Low inflation, leading to higher disposable incomes
• Increased investor confidence following the finalisation of debt restructuring
• The new government’s commitment to the IMF-led economic reform process
• An upgrade in the country’s credit rating
• Positive GDP growth in 2024
• Political stability, with a new government in place for the next five years
Q. How does the Colombo Stock Exchange (CSE) support organisations in accessing capital and scaling their businesses?
The Colombo Stock Exchange (CSE) provides a regulatory framework that facilitates capital raising through both debt and equity instruments, catering to businesses of all sizes. The CSE offers multiple listing options:
• Empower Board – for Small and Medium Enterprises (SMEs)
• Diri Savi Board – for mid-sized companies
• Main Board – for large-cap companies
• Catalyst Board – for State-owned enterprises (SOEs)
• Multi-Currency Board – allowing local companies to raise foreign currency and enabling foreign companies to list
Each board has specific entry criteria, ensuring that companies can select the most suitable option for their listing.
To support businesses through the listing process, the CSE has a dedicated unit that actively identifies and engages with potential issuers. The exchange also organises events such as Family Business Forums and other listing-related workshops in collaboration with professional institutions and business chambers across Sri Lanka.
Q. What steps are being taken to increase investor confidence and encourage greater participation in the stock market?
Investor confidence is fostered through a combination of market integrity, regulatory oversight, and education.
1. Ensuring a Fair, Transparent, and Orderly Market
The CSE enforces a robust regulatory framework that protects investor interests through:
• Listing Rules – ensuring timely and accurate corporate disclosures, price-sensitive information dissemination, and corporate governance compliance
• Brokerage Regulations – establishing guidelines for stockbrokers to maintain credibility and fair trading practices
• Trading Rules – governing secondary market trading to ensure transparency and fairness
• CDS Account Regulations – setting guidelines for the opening and maintenance of Central Depository System (CDS) accounts
The CSE also conducts regular supervision, audits, and enforcement actions to ensure compliance and maintain market integrity.
2. Investor Education & Financial Literacy
Through the CSE Academy, over 350 workshops, seminars, and forums are conducted annually across the country to enhance financial literacy. The academy also offers professional courses, some in collaboration with state universities, to provide in-depth knowledge of capital markets.
These initiatives, along with efforts by the Securities and Exchange Commission (SEC) of Sri Lanka, aim to dispel misconceptions about stock market investing and make capital markets more accessible to the general public.
Q. How is the CSE adapting to global capital market trends, including regulatory changes and technological advancements?
The CSE aligns with international best practices in both regulatory frameworks and market infrastructure. Sri Lankan listed companies adhere to International Financial Reporting Standards (IFRS and SLFRS), and corporate governance and disclosure policies are comparable to those of global markets.
Technological advancements are a key focus:
• Advanced Market Infrastructure – The CSE and stockbrokers have implemented automated order management and back-office systems.
• Introduction of XBRL (2025) – A standardised reporting format that allows investors to compare financial data across companies efficiently.
• Central Counterparty System (CCP) for Equities – A major step towards global standards in clearing and settlement, reducing transaction risks.
• Stock Market Digitisation – The CSE mobile app allows investors to open CDS accounts, trade online, access research, sign agreements digitally, and settle transactions via internet banking—all without visiting a stockbroker’s office.
• Single Sign-On (2025) – The upcoming feature will provide seamless access to all stock market services via the CSE mobile app.
These innovations make market participation more efficient, transparent, and globally competitive.
Q. How does a strong stock market contribute to national economic growth, and what initiatives is the CSE undertaking to strengthen this impact?
A robust stock market plays a crucial role in economic growth by:
• Creating Wealth for Investors – Since 2022, market capitalisation has increased by over Rs. 2 trillion, benefitting shareholders.
• Broadening Market Participation – The CSE is working to ensure stock market benefits are accessible to a larger segment of the population rather than just a select few.
To achieve this, the CSE is actively investing in new technologies and strengthening its regulatory framework. Some key initiatives include:
• Establishing Regional Offices – Increasing stock market accessibility in every province and promoting investor education.
• Hosting Educational Workshops and Seminars – Engaging various population segments to improve financial literacy.
• Collaborating with Mainstream and Social Media – Expanding awareness about stock market opportunities.
Capital Formation & Economic Impact
In 2024, the stock market facilitated Rs. 175 billion in debt and equity capital through primary and secondary market issuances. Both government and private sector institutions are leveraging the CSE to raise funds, reducing dependence on state funding. The Catalyst Board now allows State-Owned Enterprises (SOEs) to raise capital independently.
Sustainability & Green Investments
The CSE is actively supporting Sri Lanka’s “Going Green” initiative by promoting ESG (Environmental, Social, and Governance) reporting, sustainability disclosures, and green bonds to finance eco-friendly projects.
Job Creation & Business Expansion
As listed companies grow, they invest in new projects and expand operations, leading to increased employment opportunities and overall economic stimulation.
Attracting Local & Foreign Investors
A stable and expanding stock market boosts investor confidence, increasing liquidity and improving capital allocation efficiency. It also enhances the creditworthiness of businesses, lowering borrowing costs and enabling easier access to financing for infrastructure and development projects.
Financial Sector Growth
Banks and financial institutions benefit from a strong stock market through higher valuations, increased trading volumes, and stronger balance sheets, ultimately supporting broader economic stability.
Final Thoughts
The CSE remains committed to strengthening Sri Lanka’s capital markets through technological innovation, enhanced investor protection, and financial literacy initiatives. By expanding participation and aligning with global standards, the stock market continues to play a pivotal role in national economic development.
