Bangladesh, Pakistan, and Sri Lanka sign agreement to boost capital markets

In Sri Lanka, on Thursday, March 28, 2025, the Dhaka Stock Exchange (DSE), Pakistan Stock Exchange (PSX), and Colombo Stock Exchange (CSE) formalized their collaboration through a tripartite memorandum of understanding. The signing ceremony took place in Colombo with the attendance of key figures, including DSE Chairman Mominul Islam, CSE Chairman Dilshan Wirasekara, and Securities and Exchange Commission of Pakistan Chairman Akif Saeed, along with directors and senior officials from each institution. Each exchange aims to enhance cooperation to address shared challenges and opportunities in their operations. The agreement focuses on facilitating technology development and sharing, human resource collaboration, regulatory coordination, and investor protection. Notably, the DSE Chairman pointed out that South Asian stock exchanges, excluding India, are hindered by technological and operational constraints due to their smaller scale. He emphasized that these limitations obstruct markets with significant potential from achieving their full growth. Mominul Islam also contributed to discussions during a panel titled "Navigating Frontier Capital Markets: How Evolving Market Regulation and Exchanges Foster Efficient Capital Market Development." In addition to the signing, the DSE representatives engaged in separate meetings with the officials of the Securities and Exchange Commission of Pakistan and the PSX, focusing on enhancing regulatory cohesion and fostering investor trust. This agreement aligns with the broader objective of developing stronger capital markets in South Asia, particularly for smaller markets where collaboration between exchanges can lead to enhanced growth, knowledge transfer, and better market access. The emphasis on technology sharing signifies a proactive approach to overcoming challenges posed by limited resources, allowing these exchanges to compete more effectively on a regional and global scale.