June 18, 2011 (LBO) – Sri Lanka’s bourse could become one of the partners of London Stock Exchange’s ‘international board’ project where foreign stock exchanges are allowed access to its market participants and liquidity, an official said.
Weerasinghe said the international board will give a less costly way for participants in the London Stock Exchange to access Sri Lankan stocks and the company’s firms will be able to access LSE liquidity at a far cheaper way compared to getting a dual listing.
Weerasinghe said a recent central bank decision to allow Sri Lankans to invest up to 200,000 US dollar abroad will also give them an opportunity to also trade in stock from London.
Responding to a query from Sri Lankan regulators, Weerasinghe said firms in the international board as well as its transactions will continue to be governed by the rules of the home country.
He said there was a demand for the mechanism from investors who wanted round the clock trading.
He said Sri Lanka could also offer the service to investors in the South Asian region especially to Indians, who were now allowed to invest up to 300,000 dollars a year abroad.