Sri Lanka to shorten settlement cycle to T+2
16 May 2024 Sri Lanka
Image: mbrand85
The Colombo Stock Exchange (CSE) of Sri Lanka has announced it will be moving to a T+2 settlement cycle for equity transactions.
The new rule was initially proposed by the CSE on 7 February, and will come into effect on 10 June.
The CSE has highlighted that trades executed on 7 June will be settled on 12 June, based on the T+3 cycle currently in place.
The development comes as the global market moves towards faster settlement.
In March, the Qatari CSD Edaa reduced its settlement period from T+3 to T+2, while the US is preparing to move to T+1 on 28 May. The new rule therefore aligns Sri Lanka with various other financial markets.
The new rule was initially proposed by the CSE on 7 February, and will come into effect on 10 June.
The CSE has highlighted that trades executed on 7 June will be settled on 12 June, based on the T+3 cycle currently in place.
The development comes as the global market moves towards faster settlement.
In March, the Qatari CSD Edaa reduced its settlement period from T+3 to T+2, while the US is preparing to move to T+1 on 28 May. The new rule therefore aligns Sri Lanka with various other financial markets.
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