SL’s capital market needs comprehensive economic plan and foreign currency focus - SEC Chief

• Plan should facilitate around 8-9% of growth, SEC could oversee 20% of investments
• Foreign currency issuance in Asia mostly dominated by non-Asian currencies
• Calls for multi-currency board for foreign currency listings such as INR, listings of foreign currency dominated debt securities at CSE, bonds for key infrastructure projects at SEC

​By Shannine Daniel

Sri Lanka needs a comprehensive, targeted national economic plan to build investor confidence that can facilitate around 8 to 9 percent of growth, Securities and Exchange Commission (SEC) of Sri Lanka Chairman Senior Professor Hareendra Dissabandara said.

The SEC, as the facilitator and regulator of the capital market, could oversee around 20 percent of these calculated investments, he added, urging potential foreign investors and government authorities to invest in the capital market.

“The authorities should make sure government projects come through the capital market. This will be the easiest and most flexible and sustainable way to invest in new projects,” Prof. Dissabandara said.

Colombo’s Lotus Tower, valued at US$ 103 million and was funded mostly by a loan from China’s Exim bank, is not operating at its full strength, Prof. Dissabandara revealed.

“If that project came through the Sri Lankan capital market, no installments would have to be paid,” he stressed, adding that the project would have been similar to John Keells Holdings Cinnamon Life project, which is the country’s largest private sector investment at US$ 1.2 billion.

Moreover, according to him, non-Asian currencies dominate in Asian countries. In the Sri Lankan capital market, non-Asian currencies lead at a staggering 92 percent, with our local currency only at 5 to 8 percent. “This shows the potential for foreign currencies, especially attractive ones,” Prof. Dissabandara said, drawing on the Organisation for Economic Cooperation and Development (OECD)’s recent report.

He also highlighted the importance of international markets due to stronger price discovery, lower borrowing costs, stability during domestic shocks and improved governance and standards.

Prof. Dissabandara made these comments during his keynote address at the Bridging Borders II financial dialogue in Colombo. Organised by the Indo–Sri Lanka Chamber of Commerce &  Industry (ISCCI), the dialogue mainly focused on enabling bond market issuance in Indian currency, and brought together interested parties from the Sri Lankan and Indian business communities.

On 14 October 2025, the total market capitalisation of the Colombo Stock Exchange (CSE) crossed the Rs. 8 trillion mark, with 40.48 percent year-to-date (YTD) growth.

As reported previously, the SEC also plans to significantly expand the capital market by listing state-owned enterprises (SOEs), demutualising the Colombo Stock Exchange (CSE) and introducing new financial products such as digital assets.