The Colombo Stock Exchange (CSE) of Sri Lanka has announced its decision to shorten its current settlement cycle from T+3 to T+2 for all equity transactions, a move aimed at aligning with international standards.
Since the pandemic, the CSE has undertaken several significant developments, including the introduction of regulated short selling in November 2023 and stock borrowing and lending in March 2024, followed by the adoption of an equity T+2 settlement cycle in June 2024.
Another notable development in progress is the establishment of a central counterparty clearing house (CCP) for the CSE, expected to be implemented in the first half of 2025.
The move comes as markets around the world look to shorten their settlement cycles. In Asia, India recently made the switch to T+1 and has now added functionality for T+0 settlements, while the Philippines shortened the settlement cycle from T+3 to T+2 last year.
Similarly in the Middle East, the Qatari CSD Edaa reduced its settlement period from T+3 to T+2 in March 2024. Initially scheduled for 2 January 2024, this adjustment was postponed in coordination with the Qatar Financial Market Authority (QFMA) to allow market participants more time to update systems and implement new procedures.