The Colombo Stock Exchange (CSE) has introduced High-Yield Bonds, enabling companies with ratings below investment grade to raise capital through bond issuance. This initiative allows firms that previously struggled to meet stringent rating requirements to access capital markets more easily.
Eligible issuers include companies regulated by the Central Bank of Sri Lanka and the Insurance Regulatory Commission, such as banks and insurance firms. While these bonds will be listed on the CSE, trading will take place on the Over-the-Counter (OTC) Platform, restricted to "qualified investors." These experienced investors can diversify their portfolios by investing in higher-risk, higher-return bonds.