Press briefing of Cabinet Decision taken on 2018-01-30

Introduction of legislation for the Demutualization of the Colombo Stock Exchange

- The Colombo Stock Exchange has been established in the year 1985 as a non for profit 'company limited by guarantee' and it is the only major Stock Exchange operated in South Asia as a 'Shareholder Owned Company'. Demutualization is the process through which, exchanges operating as 'not for profit' member controlled organizations are converted into 'for profit' shareholder owned companies.

It is essential that, the Colombo Stock Exchange is established as a Demutualized Stock Exchange, to ensure proper management and to promote the ownership of diversified shares. As such, Cabinet approval has been granted to convert the Colombo Stock Exchange into a Demutualized Stock Exchange limited by shares and to make the legislative amendments necessary for the purpose.

Accordingly, the proposal made by Hon. Ranil Wickremasinghe, the Prime Minister, in his capacity as the Minister of National Policies and Economic Affairs, to publish the Draft Bill prepared for 'the Demutualization of the Colombo Stock Exchange', in the Gazette and subsequently, to present it in Parliament for approval, was approved by the Cabinet.