ECONOMYNEXT – Sri Lanka new Securities and Exchange Commission is developing short and long-term plans to develop capital markets and strengthen oversight, Chairman Hareenda Dissabandara has said.
“The potential of our capital market to contribute significantly to Sri Lanka’s economic development remains at the forefront of my agenda,” he said in a message.
“With both challenges and opportunities ahead, my primary goal is to build a well-regulated, transparent, and dynamic capital market that serves as a reliable foundation for investors and issuers alike.”
“Ensuring that Sri Lanka’s capital market operate in a secure, fair, and efficient manner is our foremost responsibility.
“However, we must also encourage innovation and growth, creating an environment that supports sustainable economic development.”
To achieve the SEC’s objectives three pronged set of plans are being finalized as follows.
1. Short-term Plan: Focused on addressing immediate market challenges to ensure seamless daily operations, maintain investor confidence, and reinforce market stability.
2. Medium-term Plan: Centred on key projects pivotal to transforming our capital market landscape, including:
I. Transforming the Colombo Stock Exchange (CSE) through Demutualization
II. Expanding the Corporate Debt Market for Broader Investment Opportunities
III. Innovation in Product Development to Diversify Market Offerings
IV. Fostering Growth within the Collective Investment Scheme Industry
V. Strengthening participants with Enhanced Education, Awareness and Training Initiatives
VI. Encouraging New Public and Private Listings to Broaden Market Participation
VII. Attracting Local and International Funds to Boost Capital Flow
VIII. Implementing a Central Counterparty (CCP) Mechanism at the CSE for Market Efficiency
IX. Establishing a Multi-Asset Class Derivatives Exchange to Enhance Trading Options
X. Enhancing the Regulatory Framework to Support a Resilient Market
XI. Promoting Digital Transformation to Modernise Market Infrastructure
XII. Developing Robust Market Risk Management Practices for Stability
3. Long-term Plan: With stakeholder collaboration, this forward-looking strategy spanning the next two to three decades aims to adapt Sri Lanka’s capital market to the evolving needs of future generations.