SEC holds Knowledge-Sharing Forum with University of Ruhuna

The Securities and Exchange Commission (SEC) of Sri Lanka recently participated in the Capital Market Forum 2025, organised 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 SEC Chairman Senior Professor Hareendra Dissabandara, and Deputy Director General Tushara Jayaratne.

Senior Professor Hareendra Dissabandara delivered a compelling lecture on the crucial role of capital markets in fostering economic development. He emphasised 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 capitalisation 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, emphasising 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.

Senior Professor Hareendra Dissabandara emphasised the importance of an efficient financial market in directing surplus funds from households, institutions, and foreign investors to businesses and government entities in need of capital. This, in turn, drives entrepreneurship, corporate growth, job creation, technological advancement, and overall economic development. Additionally, he stressed the importance of transparency, regulatory oversight, and strong governance structures in ensuring financial market stability. He also elaborated on the SEC’s pivotal role in safeguarding market integrity, enforcing fair trading practices, preventing financial fraud, and ensuring corporate adherence to disclosure requirements. His insights underscored how a well-regulated capital market enhances investor confidence, minimises financial risks, and promotes economic resilience.

Tushara Jayaratne provided an in-depth explanation of stock market indices in Sri Lanka, their role in tracking market performance, and how they guide investment decisions. He also addressed investor protection measures, warning against fraudulent investment schemes and the unauthorised use of corporate logos.

Additionally, he introduced the Central Depository System (CDS) and its role in facilitating securities transactions. By explaining the CDS account opening process, he encouraged students to actively engage with stock market investments.

To bridge the gap between theoretical knowledge and practical application, representatives from two leading brokerage firms assisted students in opening CDS accounts. This hands-on initiative allowed participants to gain direct exposure to capital market infrastructure and take their first steps in stock market investment. The activity, initiated by the Chairman of the SEC, is part of a broader effort to promote capital market participation in Sri Lanka.

The workshop attracted over 200 students, demonstrating high interest and engagement. Notable attendees included Faculty of Management and Finance Dean Prof. Manjula Wanniarachchige; Department of Accountancy Head Vijitha Gunaratna, and Department of Finance Head M.S. Nanayakkara. Their presence underscored the Faculty’s commitment to enhancing students’ knowledge and practical exposure to capital market mechanisms.

With strong academic and industry collaborations, the Faculty of Management and Finance at the University of Ruhuna will continue to lead financial education, empowering students to leverage capital markets for personal and national development.