SEC Sri Lanka engages in interactive knowledge-sharing forum with University of Ruhuna

The Securities and Exchange Commission (SEC) of Sri Lanka recently participated in the Capital Market Forum 2025, organized by the Department of Accountancy and the Department of Finance of the Faculty of Management and Finance at the University of Ruhuna, in collaboration with the Colombo Stock Exchange (CSE). This interactive knowledge-sharing forum aims to enhance financial literacy and promote capital market participation among undergraduates and academics.

A key highlight of the forum was the workshop on “Nurturing Future Investors: The Role of Capital Markets in Personal and Economic Growth,” which featured distinguished speakers, including Senior Professor Hareendra Dissabandara, Chairman of the SEC, and Tushara Jayaratne, Deputy Director General of the SEC.

Senior Professor Hareendra Dissabandara delivered a compelling lecture on the crucial role of capital markets in fostering economic development. He emphasized how capital markets facilitate efficient capital allocation and contribute to long-term economic stability. A key focus of his discussion was the significance of capital formation as a sustainable alternative to debt financing for government projects. He illustrated this by comparing the market capitalization of a leading Sri Lankan company with the costs of several major government initiatives.

Professor Dissabandara highlighted the historical reliance on borrowing for infrastructure development in Sri Lanka, leading to fiscal imbalances, high-interest burdens, and economic vulnerabilities. He underscored the importance of equity financing in business sustainability, emphasizing that an efficient financial market channels surplus funds from households, institutions, and foreign investors into businesses and government projects. He explained that for over 70 years, successive governments have relied on borrowing to fund infrastructure and development, causing fiscal imbalances, rising interest burdens, high taxation, and economic vulnerabilities. He also noted that corporate professionals often overlook the importance of equity financing for sustainable growth.