13th Capital Markets Conference puts spotlight on “New Markets, Fresh Initiatives”

THE 13th Capital Markets Conference convened in Colombo under the theme “New Markets, Fresh Initiatives,” held against a backdrop of escalating geopolitical tensions and trade disputes. The event brought together industry leaders to examine how Sri Lanka’s financial markets are adapting with renewed optimism, marked by breakthroughs such as the introduction of sustainable bonds and Sukuk. Despite global uncertainty, discussions highlighted the resilience and evolving sophistication of the country’s capital market landscape.

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Delivering the keynote address, Colombo Stock Exchange CEO Rajeeva Bandaranaike, provided a comprehensive overview of the structural and strategic challenges facing Sri Lanka's capital markets, while outlining the proactive measures being taken to address them. He highlighted persistent issues such as limited product diversity, shallow market liquidity, low IPO activity, and the lack of broad-based investor participation. Notable progress was made in recent years with the introduction of sustainable bonds, social bonds, Sukuk (Islamic bonds), perpetual and infrastructure bonds, and frameworks for stock borrowing and lending. He also announced plans to establish a derivatives exchange in partnership with India's NCDEX. He stressed the importance of foreign investment, referencing findings from global asset managers on what deters or attracts capital to frontier markets. He concluded with a call for greater innovation, regulatory balance, and collaboration across market participants to ensure sustainable and inclusive financial development. A point worth mentioning was that this year, the CSE celebrates 40 years since its incorporation in 1985.