In a significant move to strengthen Sri Lanka's capital market infrastructure, the Central Depository Systems (Pvt) Limited (CDS) has ...
In a significant move to strengthen Sri Lanka's capital market infrastructure, the Central Depository Systems (Pvt) Limited (CDS) has announced a partnership with Sampath Bank PLC to provide a comprehensive dividend disbursement solution for listed companies on the Colombo Stock Exchange (CSE). This collaboration aims to streamline the dividend pay-out process, making it more efficient and reducing administrative burdens for companies and investors alike.
The partnership is formalized through a service agreement under which Sampath Bank will offer its Total Dividend Solution via the Cash Management Suite under Transaction Banking. The CDS will utilize this solution for its clients, allowing listed companies on the CSE to seamlessly handle dividend disbursements. The system will offer multiple options for disbursement, including electronic funds transfers, cheque processing, and other customized methods, ensuring flexibility and ease of use.
Rajeeva Bandaranaike, CEO of the Colombo Stock Exchange, remarked on the importance of the collaboration, stating, “This partnership provides a modern and efficient solution for listed companies and shareholders. It enables companies to focus on their core operations while streamlining administrative processes. Shareholders will benefit from quicker, direct transfers, minimizing delays and errors. This sets a new benchmark for dividend distribution in Sri Lanka.”
Ayodhya Iddawela Perera, Managing Director of Sampath Bank, also emphasized the significance of the partnership, saying, “We are proud to partner with CDS to offer a seamless dividend pay-out solution. This collaboration reflects our commitment to delivering innovative cash management solutions that cater to the evolving needs of Sri Lanka's capital market. Together, we will enhance the experience for listed companies and their investors, driving growth within the financial ecosystem.”
This partnership comes at a crucial time, as the capital market seeks to modernize and improve operational efficiency. With similar agreements in place with other commercial banks, the initiative with Sampath Bank further cements CDS's dedication to elevating the dividend distribution process in the country.
The joint solution between CDS and Sampath Bank will play a pivotal role in improving investor relations and corporate transparency, making it a valuable asset for Sri Lanka's growing financial sector.
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