Sri Lanka makes big pitch to attract capital market investments

• Makes a compelling case for investments into capital markets
• Senior officials from key regulatory bodies pressed their case, emphasising why the time is right to enter the market
• Investor Forum provided firsthand insights into the progress made since the 2022 economic crisis, Sri Lanka’s current standing, and its future direction

Sri Lanka yesterday made a compelling case f or investments into its capital markets, urging investors to be part of the island nation’s growth story. Having emerged from crisis, the country is now positioning itself as an attractive destination with fresh opportunities.

At the ‘Invest Sri Lanka’ forum that kicked off in Colombo yesterday, senior officials from key regulatory bodies pressed their case, emphasising why the time is right to enter the market. The previous instance Sri Lanka made this call at home was in 2014, whereas the first was on 1998.

A full house of over 100 international delegates and about 400 local participants received firsthand insights into the progress made since the 2022 economic crisis, Sri Lanka’s current standing, and its future direction.

“We are probably one of the most resilient nations out there, having endured multiple crises in recent years. From political turmoil and the Easter bombings to Covid-19 and the economic crisis, the past five to six years have been among the most challenging in our history.

“Today, we have turned a corner. We’ve made a complete turnaround and are now at a pivotal moment, one that has never presented itself before. This is why we believe it’s important to showcase our market,” said Colombo Stock Exchange (CSE) Chairman Dilshan Wirasekara, kicking off the forum with a recap of key milestones achieved over the past 18 months.

Securities and Exchange Commission (SEC) Chairman Professor Hareendra Dissabandara made a strong case for a new growth strategy, one that ensures sustained economic expansion through market transformation.

“I do not need to remind you that we have seen an impressive stabilisation of the economy over the past three years. Sri Lanka’s economic performance has exceeded expectations.”

While acknowledging that past recoveries lacked longevity, Prof. Dissabandara emphasised the need for a stable foundation built on strong macroeconomic fundamentals and policy consistency, an area where Sri Lanka has struggled.

“While we have stabilised the market and the economy in the past, we have been unable to sustain it. What makes this time different? To break this pattern, we now have a proper regulatory and macroeconomic policy paradigm with strong pillars,” he said.

Meanwhile, Central Bank Governor Dr. Nandalal Weerasinghe reinforced the importance of predictability and price stability, which were absent three years ago but are now firmly in place. Reflecting on Sri Lanka’s past economic turmoil, he noted that few would have imagined such a swift turnaround.

“I think we had a really good turnaround the last couple of years. We have to unfortunately go through a difficult cycle, but we have brought back stability. We learned a lot of lessons along the way. But from the Central Bank, I assure we are working hard in ensuring Sri Lanka has the stability it requires.”

Meanwhile, the Invest Sri Lanka forum brought together regional frontier markets—Pakistan, Bangladesh, Maldives, and Nepal—highlighting the potential for greater collaboration.

A Memorandum of Understanding (MoU) was signed between the five markets, reinforcing a shared commitment to promoting capital market growth and fostering deeper cooperation.

While acknowledging India as the regional giant with a more advanced market, the Colombo Stock Exchange (CSE) stressed that the five frontier markets have a unique opportunity to work together, leveraging collective strengths to drive market expansion.

The event also featured Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma, Tundra Founder, AB Founding Partner Chief Investment Officer Mattias Martinsson, Redwheel Emerging and Frontier Markets Team Co-Head James Johnstone, Delloite Sri Lanka and Maldives Head - Strategy, Risk, and Transactions Ruvini Fernando, HNB Investment Bank MD/ Group CEP Ray Abeywardena, and Asia Securities Holdings Chairman Dumith Fernando as speakers.  Moderating the panel discussions were Bloomberg News Managing Editor for South Asia Jeanette Rodrigues, and Lynear Wealth Management Co-Founder and MD Dr. Naveen Gunawardane.

Pix by Pradeep Pathirena