Sri Lanka’s capital market regulator unveiled an ambitious reform agenda in 2025, as the country’s economic recovery gained momentum and investor confidence strengthened, according to Securities and Exchange Commission (SEC) Chairman Senior Prof. Hareendra Dissabandara.
In his review of the SEC’s 2025 Annual Report, Dissabandara said Sri Lanka’s economy expanded by 5% during the year, supported by improved fiscal discipline, stronger foreign reserves and restored policy credibility. He noted that the country’s long-awaited sovereign rating upgrade and exit from default marked a significant milestone in the recovery process.
Against this backdrop, the Colombo Stock Exchange (CSE) recorded a strong rebound, driven by renewed investor confidence and increased market activity.
The SEC launched a wide-ranging capital market reform programme under the theme “12 Pillars, One Vision for a Resilient Market,” aimed at modernising market infrastructure, strengthening regulation, expanding investment products and increasing investor participation.
A key development was the establishment of a Central Counterparty (CCP) framework through CSE Clear (Pvt) Ltd, designed to enhance the safety and efficiency of securities settlement and align Sri Lanka’s market infrastructure with international standards. The SEC also expanded sustainable finance initiatives, introducing regulatory frameworks for green, blue, social, sustainable and sustainability-linked bonds. The CSE recorded nine such bond issuances in 2025, raising approximately Rs. 54 billion and accounting for 40% of total corporate debt capital raised during the year.
Dissabandara said the regulator intensified efforts to encourage more private companies and State-Owned Enterprises (SOEs) to access market-based financing, particularly as new Central Bank regulations on single borrower limits come into effect from January 2026.
Investor protection remained a priority, with enhanced market surveillance, anti-money laundering oversight and public awareness campaigns targeting scams and unlicensed operators. The SEC also strengthened financial literacy initiatives, including collaboration with the Ministry of Education to promote financial education and the development of innovative learning tools aimed at broadening investor participation and supporting the long-term growth of Sri Lanka’s capital market.
Source: Daily News