Locals urged to focus on long-term goals and financial literacy via investments

• CSE urges locals to prioritise long-term financial goals over short-term market movements when investing
• Financial literacy and continuous learning key to making informed investment decisions and achieving desired outcomes

By Shannine Daniel

The locals are encouraged to take a more informed and long-term approach to investing, particularly in the stock market, as financial education initiatives highlight the importance of aligning investments with personal life goals.

Colombo Stock Exchange (CSE) official Nuwan Chaturanga emphasised that the true measure of investment success lies not just in returns but in achieving specific objectives such as funding a child’s education or building long-term wealth.

“Risk is not just about market volatility. It is about whether you achieve the objective you set out for,” Chaturanga noted at a recent awareness session for new or potential investors.

The awareness session is part of a series of programmes intended to encourage new local investors to the CSE. 

He explained that the investors must evaluate their decisions based on the outcomes rather than the short-term fluctuations, highlighting that the investments generate returns in two primary ways: regular income streams and capital appreciation over time.  

The participants were also introduced to the fundamentals of share market investing, where purchasing shares equates to owning a portion of a company. 

“When you invest in shares, you become part-owner of that business and its success directly reflects on your investment,” Chaturanga explained.

The importance of research and continuous learning was strongly underscored, with the investors urged to study market trends, company performance and economic conditions before making decisions. 

Structured learning pathways, including certification programmes designed to enhance investment knowledge, were also promoted.

In terms of market access, Chaturanga outlined two main avenues for the investors: participating in initial public offerings (IPOs) in the primary market and buying shares of already listed companies in the secondary market. 

Regardless of the approach, the investors must open an account with the Central Depository System (CDS), a subsidiary of the CSE, which facilitates a secure electronic ownership of shares, he asserted.

Chaturanga also encouraged the potential investors to download the CSE’s mobile app for account registration, IPO applications and portfolio management. 

As Sri Lanka’s investment landscape evolves, a disciplined, informed and goal-oriented approach will be key to unlocking long-term financial success, Chaturanga stressed.