Sri Lanka makes bold pitch to global investors

• SEC says recent achievements reflect not merely numbers on a screen, but the renewed confidence of investors who recognise Sri Lanka’s potential for sustainable growth
• Points out medium-term goals include building a vibrant corporate debt market, completing the digital transformation of market infrastructure, and launching a multi-asset derivatives exchange 
• CSE asserts SL is a strategic gateway into a market defined by resilience, reform, and growing global relevance

Sri Lanka yesterday stepped on to the global stage with a few key strong messages for investors; that its crisis-hit economy has turned a corner, its stock market is among the best-performing in Asia, and sweeping reforms have set the stage for sustained growth.

At the ‘Invest Sri Lanka Capital Market Investor Forum 2025 in Singapore yesterday, regulators and exchange officials told nearly 500 prospective investors gathered at the Conrad Singapore Marina Bay, that political stability, disciplined economic management, and modernised market infrastructure had created a rare alignment of policy, performance, and potential.

Securities and Exchange Commission (SEC) Chairman Senior Professor Hareendra Dissabandara pointed out that the All Share Price Index (ASPI) gained 49.7 percent in 2024, the second-best performance in the region, and has climbed another 25 percent so far this year, supported by US$ 66.5 million in net foreign inflows. Capital raising hit US$ 568.6 million last year, one of the highest annual totals on record.

“These achievements reflect not merely numbers on a screen, but the renewed confidence of investors who recognise Sri Lanka’s potential for sustainable growth,” Dissabandara said, adding that SEC’s priority is to maintain a transparent, efficient, and inclusive capital market that can attract global capital while serving domestic growth needs.

He said reforms underpinned by the 2021 SEC Act had strengthened market oversight, enabling swifter enforcement against misconduct, while technology upgrades – including a cloud-based supervisory platform with artificial intelligence and a partnership with Nasdaq – had bolstered surveillance and risk detection.
The SEC has also expanded the product suite, introducing frameworks for green, blue, social, and sustainability-linked bonds, alongside perpetual bonds, infrastructure bonds, Sukuk, stock borrowing and lending, and regulated short selling. 

The recent licensing of CSE Clear (Pvt) Ltd as a central counterparty for all equity transactions and the adoption of a T+2 settlement cycle further align Sri Lanka with global standards, he said.

Looking ahead, Dissabandara said SEC’s medium-term goals include building a vibrant corporate debt market, completing the digital transformation of market infrastructure, and launching a multi-asset derivatives exchange to deepen liquidity and strengthen risk management.

Meanwhile, Colombo Stock Exchange (CSE) Director Ray Abeywardena noted that macroeconomic stability, political certainty, and disciplined fiscal management since last year’s presidential and parliamentary elections had created a favourable backdrop for investment.

The economy grew 5 percent in 2024, driven by tourism and construction, while the rupee remained stable amid improved external performance and higher foreign inflows. 

“The ASPI, which was at 13,000 in late 2024, is today at 19,900. The S&P SL20 rose from 3,900 to 5,800 points over the same period. Market capitalisation has grown from US$ 16.4 billion to US$ 23.4 billion. At 11.7 times multiples, our market is very attractively priced,” Abeywardena told the fully packed audience.

He called the launch of the Central Counterparty platform earlier this month a “transformative development” that enhances settlement safety, reduces operational costs, and meets IOSCO principles for financial market infrastructure.

Abeywardena invited global investors to explore opportunities in digital finance, sustainable investments, and innovation-driven industries, calling Sri Lanka “a strategic gateway into a market defined by resilience, reform, and growing global relevance.”