The Colombo Stock Exchange is exploring a route that could connect investors with more overseas stock markets.
The CSE has signed a Memorandum of Understanding with Abu Dhabi Securities Exchange. The agreement covers market technology, trading systems, clearing and other post-trading operations. More importantly, it allows the CSE to explore joining Abu Dhabi’s Tabadul digital exchange network.
For investors, the potential Tabadul connection is the part worth watching closely. The network allows participating exchanges to provide cross-market access through approved local brokers. However, the CSE has only agreed to explore joining the network at this stage.
If that process moves forward, investors could eventually gain another route into regional and international markets. At the same time, international investors could have a more direct route towards opportunities on the CSE. The actual benefits would depend on regulatory approvals, participating brokers and the final market-access arrangements.
Tabadul was launched by the Abu Dhabi Securities Exchange in 2022. It uses a mutual market-access model linking participating exchanges across regional and international markets. The network had reached 10 exchange members by the first half of 2026.
The network’s activity has also grown as more exchanges and brokers joined. Tabadul recorded AED 13.5 billion in trading value during the first half of 2026, exceeding its total trading value for all of 2025. The connected markets represented more than USD 1 trillion in combined market capitalisation at that point.
For the CSE, the opportunity extends beyond simply connecting trading screens. The agreement covers electronic trading systems, technical infrastructure, market surveillance, clearing and post-trading capabilities. The two exchanges also plan to share knowledge about products including exchange-traded funds and derivatives.
That could matter for the wider capital market if cooperation leads to practical changes. Better market infrastructure can make cross-border transactions easier for brokers and investors. Knowledge sharing could also support the development of products and systems used by market participants.
The agreement follows discussions that began around the Invest Sri Lanka investor forum held in the UAE earlier this year. The Securities and Exchange Commission and CSE used the forum to meet regional financial institutions and international investors. Those discussions included meetings with Abu Dhabi Securities Exchange as part of efforts to attract greater international investment.
The next step will be whether the CSE progresses from exploring Tabadul membership to actually joining the network. That would require the necessary agreements, market arrangements and eligible brokerage connections. Until then, the MoU should be viewed as a pathway towards greater market connectivity rather than immediate access for investors.
For investors, the development is therefore one to watch rather than an immediate change to trading. The bigger question is whether the planned cooperation eventually makes cross-border investment easier. If it does, the impact could extend beyond the two exchanges to companies, brokers and investors on both sides.
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Last modified: September 7, 2026
