Business

CSE and SEC host exclusive forum to deepen institutional engagement in Sri Lanka’s capital market

Published

4 weeks ago

2025/10/10

(L-R) Shiran Fernando, Chief Economic Policy Advisor, Ceylon Chamber of Commerce; Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka; Prof. Anil J. Fernando, Minister of Labour and Deputy Minister of Economic Development; Senior Prof. D.B.P.H. Dissabandara, Chairman of the SEC; Dr. Naveen Gunawardane, Co-Founder and Managing Director, Lynear Wealth Management; and Dimuthu Abeyesekera, Chairman of CSE.

The Securities and Exchange Commission of Sri Lanka (SEC) in collaboration with the Colombo Stock Exchange (CSE) successfully convened an exclusive forum for institutional fund managers themed “Be a Part of the Capital Market’s Growth Story – One Vision for A Resilient Market” recently.

The forum, directed towards the nation’s foremost institutional fund managers, was a high-level platform for the collaboration in exploring and capitalizing on opportunities that the Sri Lankan capital market offers.

The forum serves to underscore the steadfast commitment of SEC and CSE to facilitate the long-term creation of value and to bolster institutional engagement in rising capital market growth. The proceedings were marked by the presence of several senior experts from the public and financial sectors, including Prof. Anil J. Fernando, Minister of Labour and Deputy Minister of Economic Development; Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka; Senior Prof. D.B.P.H. Dissabandara, Chairman of the SEC; Dimuthu Abeyesekera, Chairman of the CSE; Rajeeva Bandaranaike, CEO of CSE; and Dr. Naveen Gunawardane, Co-Founder and Managing Director of Lynear Wealth Management.

A high-level panel discussion formed the principal component of the programme moderated by Mr. Shiran Fernando, Chief Economic Policy Advisor of the Ceylon Chamber of Commerce. The panel discussed the future of allocations into equity amidst the ongoing financial climate, the role of digital democracy in maintaining the government’s policies of good governance, the SEC’s new strategic plan “12 Pillars One Vision for a Resilient Market” as well as questions from the investment fund managers, such as the role of the EPF and ETF moving forward. The robust exchange afforded fund managers the opportunity to examine long-term investment paradigms and the growth of the capital market.

Prof. Anil J. Fernando, Minister of Labour and Deputy Minister of Economic Development, in his keynote address, articulated the government’s perspective on the favourable investment culture that has arisen in the country through the stabilization of inflation at 5%, assuring the forum that “Our Government’s key role is that of a facilitator rather than being a part of the politicization. Giving the freedom and autonomy for all these agencies to come out with your expertise and competencies.” To that end, the Minister stated that the government’s pre-existing guidelines on the capital market aimed at creating a level playing field, enforce rule of law, and bring new enactments to enhance investor confidence.

During the panel discussion Central Bank Governor, Dr. P. Nandalal Weerasinghe, touching on Dr. Gunawardane’s presentation, spoke of how the ongoing commitment to fiscal discipline has and will continue to produce a sustained positive current account balance. He added, “We have generated domestic savings which is more than enough for investment needs in the country. This is a new situation.” He compared the current macro-economic environment to past decades, which were marked by current account deficits and constrained domestic savings. Furthermore, the Governor stated that stable inflation in a low interest environment would encourage investors seeking returns to look beyond just the banking sector.

Asked at the panel discussion about the SEC’s landmark strategic plan titled “12 Pillars One Vision for a Resilient Market” Senior Prof. D.B.P.H Dissabandara, Chairman of the SEC, reiterated its applicability to institutional investment funds – specifically the consolidation of funds, both domestic and international. He noted the SEC’s dual role as both regulator and facilitator and cited the SEC’s success in creating a level playing field and ensuring transparency in the capital markets. Lauding the Central Bank, he noted that the state of the economy has transitioned from “the state of rescue to recovery. The next phase is growth – and you cannot grow without capital. Thus, we must consider the investment avenues and consider which segments of the economy we wish to prioritize, which requires centralized decision-making.”

Dimuthu Abeyesekera, Chairman of CSE, noted the underrepresentation of the population in the capital market was a barrier to growth, with Sri Lanka’s 50,000 active investors amounting to only 0.2% of the total population. He explained that outreach beyond the Western Province is necessary, as account openings outside the province currently represent only 39% of the total openings. CSE has already established ten branches outside Colombo, with branches in all nine provinces and aims to create twenty-five branches – a branch per district. By the year end, the CSE will open four more branches in Kegalle, Galle, Maharagama and Gampaha. Such outreach targets potential investors who have traditionally relied on the banking sector for returns and, due to low interest rates, may seek alternative investment avenues. These investors, Mr. Abeyesekera noted, are vulnerable without a trusted market facilitator. “We, the CSE, must fill that gap. We are regulated by the SEC and are a legalized entity. Outside the Western Province, there are no investment opportunities apart from the banking sector.”

Rajeeva Bandaranaike, CEO of CSE, contextualized the forum’s role, outlined the history of share trading in Sri Lanka, and highlighted the role the CSE plays as it commemorates its 40th anniversary. Acknowledging the noteworthy progress made over the years, he also highlighted the challenges of the future – namely, expanding the breadth and depth of the market. He emphasized the efforts to address these challenges, ranging from financial literacy drives, improving market infrastructure, and creation of new capital instruments. Noting the dominance of both domestic institutional and retail investors, he observed that the low interest regime has renewed investor interest in the capital market. Addressing the audience, he said “Institutional Funds play a catalytic role in the overall development and broadening of the market by providing professional portfolio management services with due diligence, integrity and financial acumen required, while also contributing to liquidity and activity in the secondary market.”

Finally, in his presentation, which primed the panel discussion, Dr. Naveen Gunawardane, Co-Founder and Managing Director of Lynear Wealth Management, spoke on the paradigm shift in equities. In his in-depth analysis he explored how the transformed macro-economic environment, resulting from the government’s financial discipline, would compel institutional funds to reconsider sole reliance on the debt market if they wished to achieve their target returns. Dr. Gunawardane noted “If the country can run a primary surplus which in turn can lead to more stable interest rates, then it is going to force all of us to reconsider our asset allocation. The fundamental question we, as institutional investors, must ask ourselves is; can you meet your target return through fixed income alone? In this new macro-economic environment, you may find that you cannot.” Dr. Gunawardane noted at the forum that institutional investors with pre-existing equity investments should consider increasing their allocations while those without should seriously consider initiating them if the underlying assumption was that the government would continue with the Central Bank Act and the Public Finance Management Act beyond the end of the IMF program.

The forum is part of a broader initiative to engage the wider investor market in the healthy growth currently underway in the capital market, and to empower institutional investors to exercise judicious allocation decisions that support both growth and portfolio diversification. Both the SEC and CSE are committed to sustaining this effort through continuous engagement and the convening of similar strategic forums across the country.

All News Advertisement

Business

John Keells Holdings doubles EBITDA to Rs.18.3Bn, signals even stronger second-half

Published

22 hours ago

2025/11/6

Sahan Weerasooriya

Keells’ Chairperson Krishan Balendra

The Group delivered a strong quarterly performance marked by the contribution from its new investments and businesses as well as a robust contribution across the portfolio. The operationalising of key investments in the first half of the year provides a strong platform to translate to an enhanced profit contribution over the second half and the ensuing financial year.

Group earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs.18.36 billion in the second quarter of the financial year 2025/26 is a significant increase of 127% against Group EBITDA of Rs.8.09 billion recorded in the corresponding period of the previous financial year.

Cumulative Group EBITDA for the first half of the financial year 2025/26 at Rs.31.33 billion is an increase of 98% against the previous year. Given the high seasonality in many of our businesses, the second half performance is expected to improve further over the first half. The Group recurring EBITDA for the full financial year 2024/25 was Rs. 45.69 billion.

Group profit before tax (PBT) at Rs.7.80 billion in the quarter under review is a significant increase of 243% against the Rs.2.27 billion recorded in the second quarter of 2024/25.

Group profit after tax (PAT) at Rs.4.20 billion in the second quarter of the financial year 2025/26 is an increase of 176% against the Rs.1.52 billion recorded in the previous financial year while the profit attributable to equity holders of the parent is Rs.1.65 billion compared to Rs.1.37 billion in the corresponding period of the previous financial year.

The profit attributable to equity holders of the parent, excluding City of Dreams Sri Lanka and JKCG, is Rs.2.61 billion in the quarter under review compared to Rs.692 million in the corresponding period of the previous financial year. (JKH)

Business

Korea celebrates National Foundation Day and 48 years of Korea–Sri Lanka Friendship

Published

22 hours ago

2025/11/6

Sahan Weerasooriya

The Embassy of the Republic of Korea in Sri Lanka, led by Ambassador Miyon Lee, hosted a grand celebration to mark Korea’s 4358th National Foundation Day at Cinnamon Life, Colombo. This year’s celebration also commemorated the 48th anniversary of diplomatic relations between Korea and Sri Lanka, highlighting the deepening friendship and multifaceted cooperation between the two nations.

The occasion was graced by several distinguished guests, including Hon. Saroja Savithri Paulraj, the Minister of Women and Child Affairs, who attended as the Chief Guest. Also in attendance were Cabinet Ministers, Ministry Secretaries, Ambassadors, Korean nationals, and representatives from diverse sectors of Sri Lankan society, all of whom have contributed to the ongoing partnership between Korea and Sri Lanka.

In her opening address, Ambassador Miyon Lee warmly welcomed the guests and emphasized the deep historical and cultural significance of National Foundation Day for the Korean people. She highlighted Korea’s journey from its ancient roots to its modern achievements, underscoring the nation’s commitment to democracy, global peace andprosperity.

Ambassador Lee also reflected on the evolving bilateral relationship between Korea and Sri Lanka, particularly through Korea’s Official Development Assistance (ODA) programs. She spotlighted several key collaborations over the past year and outlined Korea’s new phase of soft power diplomacy with focus on “K-Initiative” aimed at promoting K-pop, K-dramas, Kmovies, K-beauty, and even K-technology to reach beyond Korea and across the globe.

Special mention was made of KOICA (Korea International Cooperation Agency), the lead organization implementing Korea’s ODA in Sri Lanka. The Ambassador congratulated KOICA on its 30th anniversary in Sri Lanka, recognizing its enduring presence and dedicated service across multiple sectors.

Minister Saroja Savithri Paulraj, in her keynote address extended heartfelt congratulations on the occasion of Korea’s National Day and commended the Korean government for its generous support through Korea’s Official Development Assistance (ODA).

Korea Celebrates National Foundation Day and 48 Years of Korea–Sri Lanka Friendship She acknowledged the significant contributions of Korean ODA to key sectors in Sri Lanka including education, transportation, tourism, technology, water management, and rural development, which have played a vital role in the country’s socio-economic progress.

Emphasizing on the role of Sri Lanka’s migrant labour force in Korea, she stated that over 30,000 Sri Lankan migrant workers are employed in Korea under the Employment Permit System (EPS) and thanked the Republic of Korea for its commitment towards the well-being of the Sri Lankan community.

The Minister further noted that as Korea and Sri Lanka mark 48 years of diplomatic relations this year, she is confident that the strengthening ties between the two nations will continue to advance their comprehensive bilateral agenda and foster deeper collaboration in multilateral fora.

This year’s National Foundation Day celebration offered a unique sensory experience, showcasing the essence of Korean traditional culture, wellness and culinary artistry. Themed around “K-initiative” and showcasing K-beauty products, the event featured exhibits of Korean cosmetics hosted by the Korea Trade-Investment Promotion Agency (KOTRA) — showcasing Korea’s global influence in skincare and wellness. Additionally, a booth hosted by LG Electronics provided visitors with the chance to experience the latest cutting-edge technology developed in Korea, further underscoring the country’s innovation and cultural pride.

Guests also enjoyed a flavourful Korean culinary experience at the Korea Food Corner, which featured beloved dishes such as Kimbap, Ojingeobokkeum (stir-fried squid), Japchae, Bulgogi, Korean braised chicken, pan-fried zucchini, chive pancakes, and classics like Kimchi and Tteokbokki, all prepared by, Mr. Choi Jae-hyun, a master Korean chef who travelled all the way from Korea for the event. The traditional Korean sweet rice drink, Sikhye, also proved to be crowd favourite, delighted guests with its refreshing taste.

As in previous years, the celebration was made more vibrant by the enthusiastic participation of the Korean community in Sri Lanka. Their strong sense of national identity, unity and pride added warmth to the event. Following the official reception and dinner, Ambassador Miyon Lee, dressed in a customized Hanbok specially curated for her by Buddhi Batiks, took the time to engage personally with members of the Korean and Sri Lankan communities, capturing the spirit of togetherness through a commemorative photo session.

Business

Adani lessons cited: Chamber demands financial acumen in PPP negotiations

Published

22 hours ago

2025/11/6

Sahan Weerasooriya

Eminent participants at the forum pose for a photograph with Indian High Commissioner Santosh Jha and Energy Minister Kumara Jayakody, at ITC Hotel on Nov. 4. Pic by: Nishan S. Priyantha

In a sharp reminder of the financial pitfalls in large-scale infrastructure deals, the Ceylon Chamber of Commerce (CCC) urged the government to fortify its negotiating teams with top financial expertise to navigate unknown territories and protect the nation’s interest in Public-Private Partnerships (PPPs).

Speaking at the forum, “PPP Partnerships for National Prosperity,” held at the ITC Hotel in Colombo, Saliya Wickramasuriya, Co-Chair of the Ceylon Chamber’s Energy Sector Committee, directly appealed to Dr. Sulakshana Jayawardene, CEO of the National Agency for Public Private Partnerships (NAPPP), citing the controversial exit of the Adani Group’s wind power project.

Wickramasuriya, a veteran of global energy major Schlumberger and Sri Lanka’s top government institutions, including the BOI and Ports Authority, intimated that the failure to secure a favorable end-consumer tariff in the Adani deal highlighted a significant lack of financial acumen and project modelling among Sri Lanka’s evaluation panels. He stressed that this deficiency must be addressed immediately as the nation finalises its crucial PPP Draft Bill, which is anticipated to become law within the first quarter of 2026.

His comments underscored the need for robust evaluation of PPP partnerships and the tariffs that arise from them, ensuring both the protection of the end-consumer and the long-term viability of high-profile infrastructure projects. Several other speakers at the forum also demanded rigor and transparency in PPPs, particularly as Sri Lanka seeks to leverage this model to drive post-crisis economic recovery.

Dr. Sulakshana Jayawardene confirmed during his speech that the PPP Draft Bill is currently in progress and is expected to be enacted toward the end of the first quarter of 2026. He pointed out that once the Act is in place, the Public Investment Committee, in coordination with the National Planning Department of the Finance Ministry, will review project proposals. This body will then determine whether a project should be implemented with public financing or through a PPP, which is where the government needs to establish a clear regulatory framework.

“There are 67 projects currently being considered, and we are working with line agencies in the process of establishing PPPs. PPP is one of the key strategic approaches we follow for enhanced growth,” Dr. Jayawardene stated.

The forum focused on PPPs in critical infrastructure, energy, education, and real estate investment. The energy sector took a central role, with the keynote address delivered by Sanjay Banga, CEO and MD of Tata Power Renewable Energy Ltd.

This knowledge-sharing event on Public–Private Partnerships (PPPs) was jointly organised by the High Commission of India in Colombo and the Ceylon Chamber of Commerce.

Bingumal Thewarathanthri, Vice Chairperson of the Ceylon Chamber of Commerce, said that the national grid upgrade alone would need an investment of a few billion dollars, and that PPPs would be a viable way to make this investment possible.

By Sanath Nanayakkare