SEC unveils “12 Pillars One Vision” roadmap to advance Sri Lanka’s capital market

THE Securities and Exchange Commission of Sri Lanka (SEC) recently launched its strategic plan titled "12 Pillars One Vision for a Resilient Market," presenting a transformative roadmap designed to position the country's capital market as a primary engine for economic growth.

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Labour Minister and Economic Development Deputy Minister Treasury Secretary Dr. Harshana Suriyapperuma SEC Chairman Prof. Hareendra Dissabandara

SEC Chairman Prof. Hareendra Dissabandara unveiled the framework at a ceremony attended by Labour Minister and Economic Development Deputy Minister Prof. Anil Jayantha Fernando, Treasury Secretary Dr. Harshana Suriyapperuma, senior officials from the SEC and the Colombo Stock Exchange, and key stakeholders from across the financial sector.

The strategic plan represents the culmination of a yearlong consultation process involving capital market professionals, regulatory bodies, international development partners, and industry experts in what Prof. Dissabandara described as "a 360-degree assessment" of the market's challenges and opportunities.

"The SEC Act 19 of 2021 mandates us not merely to regulate, but to create and maintain a fair, orderly, efficient, and transparent securities market," Prof. Dissabandara said. "For too long, the creation, maintenance and development aspects have been overlooked. This strategic plan reclaims that mandate and charts a course for genuine transformation."

The Chairman emphasised that the work is intergenerational in scope: "This is not for our generation but for generations to come, going beyond Generation Alpha to Generation Beta and beyond. We must build a vibrant capital market for Sri Lanka's future."

Addressing critical market gaps Prof. Dissabandara presented statistics highlighting the urgency of capital market development.

Sri Lanka's stock market capitalisation represents merely 26% of GDP, compared to Hong Kong's 1,200%, Singapore and Malaysia's 200%, and even below regional peers like Bangladesh. The corporate debt market is virtually nonexistent at 0.8% of GDP, while Government securities dominate the financial sector at 58.5% of GDP.