In a significant move aimed at strengthening corporate governance and safeguarding shareholder interests, the Colombo Stock Exchange (CSE) has introduced a revised disclosure framework governing the utilization of funds raised by listed companies through public offerings.
Through Circular No. 06/2026, issued on 21 August 2026 to the Managing Directors and Chief Executive Officers of all listed companies, the CSE announced immediate changes to the disclosure format prescribed under Rules 7.6(xiii) and Appendix 7A, Part (a), Item 3 of the CSE Listing Rules.
The revised framework is intended to enhance corporate reporting standards and ensure that capital raised from the public is utilized in accordance with the objectives and business plans communicated to investors.
According to the circular, the updated format has been introduced to improve the “level of detail, transparency, and accountability” in reporting how funds raised through public issuances are utilized. Listed companies are required to adopt the revised format in both their Annual Reports and Interim Financial Statements until all proceeds raised through an Initial Public Offering (IPO) or subsequent securities issuance have been fully utilized.
The CSE has also introduced stricter compliance requirements once the proceeds have been completely utilized. Companies must submit a duly certified extract of a Board Resolution specifically confirming that the funds raised were utilized in accordance with the objectives set out in the relevant Prospectus or Circular to Shareholders.
Where the original objectives for the use of funds have been changed, the Board's authorization must additionally demonstrate that the company has followed the applicable procedures governing such changes.
The CSE has further stated that it reserves the right to request additional documents and explanations where necessary, reinforcing its oversight of how public capital is deployed.
The revised disclosure framework also introduces a more detailed mechanism for tracking and reporting the utilization of funds, providing investors with greater visibility into how capital raised from public markets is being allocated.
Colombo Stock Market Turnover Surpasses Rs. 16 Billion on Major CT Holdings and Cargills Transactions
The Colombo Stock Exchange (CSE) recorded a substantial turnover of Rs. 16.85 billion on August 24, marking its highest single-day turnover since July 16, 2025, when the market recorded Rs. 17.01 billion.
The surge in market activity was largely driven by major negotiated transactions involving CT Holdings PLC and Cargills (Ceylon) PLC.
A total of 20.14 million shares of CT Holdings changed hands through crossings at Rs. 575 per share, generating a turnover of Rs. 11.58 billion.
Meanwhile, six million shares of Cargills (Ceylon) were traded at Rs. 700 per share, contributing a further Rs. 4.2 billion to the day's turnover.
CT Holdings, the parent company of Cargills (Ceylon), currently holds a 71.18% stake in the subsidiary.
The two transactions together accounted for a significant portion of the day's overall market turnover, driving activity to its highest level in more than a year.
Colombo Stock Exchange Introduces Stricter Disclosure Rules for Public Fund Utilization
