24 Jan 2024
In a landmark move, NDB Bank and the Colombo Stock Exchange (CSE) have entered into a Memorandum of Understanding (MoU) to pave the way for foreign investors to seamlessly invest in the Colombo Stock Exchange through Inward Investment Accounts (IIA), accessible via the CSE mobile application.
Under this collaboration, NDB Bank assigned the Custody and Trustee Services Department as the central coordinating entity, facilitating a smooth linkage between the two organisations and ensuring uninterrupted account services and on-going assistance.
The key objective of this strategic alliance is to enhance the investment platform for foreign investors interested in opening Central Depository Systems (CDS) accounts using the CSE mobile application. Through an electronic exchange of information, the CDS will relay the details of foreign applicants and their stockbrokers to the Bank. Subsequently, NDB Custody and Trustee Services will open the Inward Investment Accounts upon completion of the Know Your Customer (KYC) process and promptly confirm the IIA details to initiate the CDS accounts.
Eligible customers, including non-national residents in or outside Sri Lanka, Sri Lankan nationals with permanent resident status or citizenship in another country, dual citizens, and Sri Lankan citizens employed abroad, will benefit from this initiative. Additionally, companies incorporated outside Sri Lanka, partnerships registered abroad, and various foreign funds and institutional investors will have the opportunity to invest not only in shared (listed/unlisted) but also in Collective Investment Schemes, Savings/Term Deposits in designated Treasury bonds, listed debt securities, Government Securities (Treasury Bills/Debentures), and immovable property using the NDB IIA.
This collaboration not only simplifies the investment process but also marks a significant step in attracting foreign investment into the Colombo Stock Exchange. It aligns with the broader vision of fostering a conducive environment for international investors and contributes to the overall growth and development of Sri Lanka’s financial markets.
The MoU signifies the commitment of both NDB Bank and CSE to explore additional areas of cooperation for mutual benefit. By fostering a collaborative spirit, NDB Bank aims to unlock new possibilities, expand avenues for investors, and propel the Sri Lankan financial landscape into a new era of growth and innovation.
NDB Bank is the fourth-largest listed commercial bank in Sri Lanka. The Bank was recently named the Retail Bank of the Year (Sri Lanka) at Asian Banking & Finance Retail Banking Awards 2023 and the Best Corporate Bank 2023 by Asiamoney and also emerged as the Most Awarded Corporate in Sri Lanka in 2022 for the second consecutive year, as per the annual rankings of Sri Lankan publication LMD. The Bank was adjudged the Best Bank in Sri Lanka 2022 by Global Finance USA and Euromoney in their annual best bank awards programmes. Additionally, The Bank was named one of the "Top 50 Best Workplaces in Sri Lanka 2022" by Great Place To Work, USA. NDB is the parent company of the NDB Group, comprising capital market subsidiary companies, together forming a unique banking and capital market services group. The Bank is committed to empowering the nation and its people through meaningful financial and advisory services powered by digital banking solutions.