The Securities and Exchange Commission (SEC) of Sri Lanka participated in the Capital Market Forum 2025, organised by the Department of Accountancy and the Department of Finance of the Faculty of Management and Finance at the University of Ruhuna, in collaboration with the Colombo Stock Exchange (CSE) recently.
This interactive knowledge-sharing forum aimed to enhance financial literacy and promote capital market participation among undergraduates and academics.
A highlight of the forum was the workshop on “Nurturing Future Investors: The Role of Capital Markets in Personal and Economic Growth.” which featured several speakers, including Chairman of the SEC, Prof. Hareendra Dissabandara, and Deputy Director General of the SEC, Tushara Jayaratne.
Prof. Dissabandara outlined how capital markets facilitate efficient capital allocation and contribute to long-term economic stability. A key focus of his discussion was the significance of capital formation as a sustainable alternative to debt financing for government projects.
He illustrated this by comparing the market capitalisation of a leading Sri Lankan company with the costs of several major government initiatives.
Prof. Dissabandara highlighted the historical reliance on borrowing for infrastructure development in Sri Lanka, leading to fiscal imbalances, high-interest burdens, and economic vulnerabilities.
He underscored the importance of equity financing in business sustainability, emphasising that an efficient financial market channels surplus funds from households, institutions, and foreign investors into businesses and government projects.
For over 70 years, successive governments have relied on borrowing to fund infrastructure and development, causing fiscal imbalances, rising interest burdens, high taxation, and economic vulnerabilities. Corporate professionals often overlook the importance of equity financing for sustainable growth, he said.
