SEC Welcomes 2027 Budget Measures to Expand Stock Market Participation and Support SMEs
November 15, Colombo (LNW): The Securities and Exchange Commission of Sri Lanka (SEC) has welcomed the Government’s 2027 Budget, expressing satisfaction over the inclusion of two proposals it had previously put forward to strengthen the country’s capital market and create wider investment opportunities.
The initiatives, titled ‘A Share for Everyone’ and the SME Listing Support Mechanism, are expected to encourage greater public participation in the stock market while helping small and medium-sized enterprises (SMEs) secure funding through the capital market.
In a statement, the SEC said the inclusion of these proposals reflected growing recognition of the importance of developing a more accessible and diversified financial market as part of Sri Lanka’s broader economic development strategy.
The Commission noted that advising the Government on securities market development and supporting the implementation of relevant national policies are among its statutory responsibilities. It said the two initiatives had been proposed as practical measures to address longstanding limitations in market participation and access to capital.
Under the ‘A Share for Everyone’ programme, eligible students sitting the Advanced Level examination will be given an opportunity to gain exposure to stock market investments. Operating under the theme ‘Let’s Know, Let’s Learn, Let’s Invest’, the initiative aims to introduce young people to financial markets and develop a better understanding of saving, investment and wealth creation.
The SEC believes that providing students with early exposure to investment opportunities could help establish more informed financial habits and encourage responsible participation in the country’s capital market in the years ahead.
The second proposal focuses on helping SMEs enter the stock market through a dedicated listing support mechanism. The Commission pointed out that smaller businesses play a crucial role in generating employment, encouraging innovation and supporting economic activity beyond major commercial centres.
However, many such enterprises face difficulties obtaining the capital required to expand their operations. Facilitating their entry into the stock market could provide an alternative source of financing, reduce their dependence on conventional borrowing and create opportunities for long-term business expansion.
The SEC also expects the listing process to encourage participating businesses to adopt stronger corporate governance practices, improve financial transparency and maintain higher standards of accountability.
According to the Commission, the two measures address different but equally important aspects of capital market development. While the student-focused programme seeks to increase the number of individual investors, the SME initiative is intended to expand the range of businesses and investment opportunities available in the market.
The SEC observed that Sri Lanka still has considerable room to increase public involvement in stock market activities. Greater participation from both investors and businesses could improve the flow of funds into productive sectors, strengthen market liquidity and support a more inclusive investment environment.
The Commission also acknowledged the Government’s financial commitment to the proposed programmes and highlighted the importance of cooperation between the Treasury, the Colombo Stock Exchange and other industry participants.
It reaffirmed its readiness to work with the Ministry of Finance, educational institutions, market intermediaries and business organisations to translate the budget proposals into practical programmes with measurable outcomes.
The SEC expressed particular appreciation to President and Finance Minister Anura Kumara Dissanayake, Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, and Treasury Secretary Dr Harshana Suriyapperuma for their support in considering the Commission’s recommendations.
The Commission described the initiatives as a long-term investment in the country’s financial future, noting that developing financially aware young investors and improving funding opportunities for emerging businesses could help create a stronger foundation for sustainable economic growth.
It added that successful implementation would be essential to ensuring that the benefits of capital market development reach a wider section of society, rather than remaining limited to established investors and large corporations.
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