The Colombo Stock Exchange (CSE) has announced that its wholly owned subsidiary, Central Depository Systems (Pvt) Ltd. (CDS), will introduce new measures to enhance the security of dormant CDS accounts that have remained inactive for three years or more.
According to a statement issued by the CSE, the initiative introduces a staggered suspension framework for dormant accounts as part of efforts to strengthen investor protection and reduce the risk of fraudulent activity.
Under the new framework, CDS accounts that have remained inactive for three years will be classified as “Non-Operative Client Accounts” in accordance with CDS Rule 3.10. Once classified, transactions and dealings through those accounts will be temporarily restricted until the account holder completes the reactivation process.
The CSE emphasized that the non-operative status is not permanent and does not affect the ownership rights of investors. Account holders will continue to retain ownership of their securities and remain entitled to receive corporate benefits, including dividends, bonus issues, and other distributions.
The Exchange further clarified that the measure will not result in the transfer, forfeiture, or cancellation of any securities held in the affected accounts.
CDS account holders may reactivate their accounts at any time by updating their Know Your Customer (KYC) information. Reactivation can be completed conveniently through the CSE Mobile App using the “Non-Operative Reactivation” option or via the official CDS website.
The CSE noted that there is no deadline for reactivation, allowing investors to restore full access to their accounts whenever required.
According to the CSE, the initiative forms part of ongoing efforts to strengthen investor protection, improve account security, and safeguard the integrity of Sri Lanka’s capital market.
