The agreement links Abu Dhabi and Sri Lanka across trading technology, surveillance, post-trade infrastructure and product development, with Colombo also exploring membership in ADX’s growing Tabadul network.
The Agreement Goes Beyond Knowledge Sharing
The Abu Dhabi Securities Exchange (ADX) and Colombo Stock Exchange (CSE) signed a memorandum of understanding on September 7, 2026, aimed at strengthening capital-market ties between the UAE and Sri Lanka.
The agreement covers electronic trading systems, exchange operations, technical infrastructure and market surveillance, as well as clearing and post-trade functions. ETF and derivatives expertise will also be shared between the exchanges. Discussions began after the CSE’s Invest Sri Lanka investor forum in the UAE earlier this year.
The distinction for investors is that the MoU does not create immediate cross-listings or automatic trading access. But, it establishes a framework from which those links could develop.
Tabadul Is the More Interesting Next Step
Colombo will explore joining Tabadul, ADX’s mutual-market-access network, which allows investors to trade securities on participating exchanges through eligible domestic brokers after completing the relevant know-your-customer (KYC) requirements.
Tabadul had 10 exchange members as of June 30, 2026, connecting markets with more than $1 trillion in combined capitalization, 700 listed companies and 11 million registered investors. First-half trading value reached AED13.5 billion, already exceeding the platform’s entire 2025 turnover.
ADX brings substantial scale to that network. Its market capitalization stood at AED2.8 trillion at the end of June, with AED171 billion traded during the first half. International investors accounted for 48% of trading value.
Colombo Offers a Different Kind of Market Exposure
Sri Lanka’s All Share Price Index closed at 21,623.66 on September 7, while daily turnover reached LKR2.13 billion. Foreign investors recorded a net LKR18.5 million outflow during the session.
Closer connectivity with Gulf capital therefore arrives while Colombo is trying to widen its international investor base. The CSE’s August rebound followed a difficult stretch for Sri Lankan equities, and foreign participation remains an important source of potential liquidity.
ETFs Could Be One of the Practical Outcomes
ETF development is particularly relevant because the two exchanges start from different positions. The CSE’s 2024 annual report still identified exchange-traded funds as part of its product pipeline, whereas ADX has built the region’s largest ETF marketplace.
ADX’s 24th ETF, the Lunate Solactive GCC Shariah Dividend ETF, listed in June 2026 and provides Sharia-compliant exposure across Gulf equity markets. Investors can also access Abu Dhabi directly through the Lunate FTSE ADX 15 ETF, while the Lunate S&P UAE Shariah ETF tracks 30 liquid Sharia-compliant UAE companies.
For Colombo, ADX’s experience with ETF market-making, creation and redemption, cross-listing and Islamic investment structures could prove more consequential than the MoU itself. Tabadul membership would then add the distribution channel needed to place future Sri Lankan products in front of a much broader regional investor base.
