Central Depository Systems (Pvt) Ltd (CDS), a subsidiary of the Colombo Stock Exchange (CSE), has reached a significant milestone, with total registered accounts exceeding one million. This achievement aligns with the upcoming 35th anniversary of the organization in September 2026, marking three and a half decades of providing essential depository infrastructure for the Sri Lankan capital market.
Established in 1991, CDS distinguished itself as the first depository in the South Asian region. In its primary role, the institution holds various securities, including shares, debentures, corporate bonds, and units, in electronic form on behalf of investors.
The surpassing of the one million account threshold highlights the aggressive expansion of the retail investor market over the last five years. This growth is largely due to the comprehensive digitalization of the CSE, which has improved accessibility for individuals nationwide. Digital tools such as the CSE Mobile App and the “CDS e-Connect” portal have transformed investor interaction with the stock market, offering real-time access to holdings and a user-friendly interface for account management. Launched in 2016 and revamped in 2021, “CDS e-Connect” has evolved into a comprehensive platform offering services like client profile management, real-time balance and transaction viewing, an eNomination facility, monthly statements, and a newly introduced dividend payment history viewing option. Since 2016, CDS has ensured transparency and security for account holders by offering eStatements and SMS alert facilities. The decentralization of account openings and the introduction of online facilities in 2020 have successfully brought the stock market to the public’s fingertips, moving away from traditional, paper-heavy processes.
A pivotal moment in this 35-year history was the 2011 launch of the full dematerialization drive, aimed at significantly reducing the movement of physical certificates, which were susceptible to loss, damage, and forgery. Today, CDS holds 97 percent of listed equity and 100 percent of corporate debt in scripless form, showcasing the success of this initiative. This near-total transition to electronic records has provided a secure and accessible service environment. The Central Control Unit plays a crucial role in ensuring all depository functions comply with strict rules and regulatory guidelines, maintaining the ecosystem’s integrity and fostering trust among domestic and international investors.
Beyond its core depository functions, CDS has expanded its influence through the Corporate Solutions Unit (CSU), established in 2017. The CSU aims to standardize and enhance corporate action services benchmarks in Sri Lanka and has expanded by acquiring the PW Corporate Registrar arm. This diversification allows CDS to extend registrar services and manage corporate actions for both listed and unlisted companies, providing a comprehensive suite of services, including dividend distribution, rights issues, and e-applications for Initial Public Offerings (IPOs). The digitization of issuer services has been a hallmark of the CSU’s efforts, introducing innovations like eDividend payments, eWarrants, and eNotices. These advancements have streamlined issuer processes while ensuring shareholders receive their entitlements promptly and securely.
The strategic outlook for CDS is focused on the newly formed Research and Development Unit, which is vital to the organization’s future vision. This unit functions as a Project Management Office and is responsible for developing innovative services. By fostering strategic alliances and international collaborations, the R&D unit ensures CDS remains a forward-thinking institution capable of adapting to the global financial sector’s evolving needs.
As CDS approaches its 35th year of service, it remains committed to digital transformation, strategic partnerships that drive progress, new service offerings, and enhanced international relations. The integration of new technologies continues to ensure robust infrastructure for the next generation of market participants.
Commenting on CDS’s vision, Head of CDS Mr. Nadeera Athukorale remarked, “By balancing its core depository duties with non-core registrar and consultancy services, CDS has positioned itself for long-term sustainability and industry leadership.”
The achievement of one million accounts stands as a testament to the resilience and adaptability of the Sri Lankan capital market infrastructure, demonstrating CDS’s ability to facilitate a growing digitized market while continuing to serve as the backbone of the nation’s investment landscape.
