Recently launched new 'Empower' board on the Colombo Stock Exchange (CSE) is targeted at Sri Lanka's Small and Medium enterprises encourage smaller and midsize companies to have a chance to reduce leverage by selling stock on a liberalized marketplace with simpler regulation and lower costs.

"The SME Board of the Colombo Stock Exchange can play a crucial role in enabling such young companies to take their first steps into capital markets and raise equity funding to grow to the next level," Finance Minister Mangala Samaraweera told reporters at the launch.

Companies which have at least Rs. 25 million in capital, with a minimum two years corporate and clean audit reports could seek a listing on the Empower board.

Speaking at the event Ranel Wijesinghe, Chairman of Sri Lanka's Securities and Exchange Commission (SEC) said that accounting professionals, banks and also lending agencies could play a greater role in enabling SMEs to tap capital markets. Rajiva Bandaranaike, chief executive of the CSE said firms would only have to have Rs. 75,000 listing fee, no minimum float and had to provide 6-months accounts, instead of quarterly, whilst prospectus could be provide digitally without a printed copy.