SEC’s Capital Market Education and Training Div. holds Certificate and Diploma Awards Ceremony

The fifth awards ceremony of the Capital Market Education and Training (CMET) Division of the Securities and Exchange Commission of Sri Lanka (SEC) was held on 13 February at the BMICH. Central Bank Governor Dr. Indrajit Coomaraswamy attended the occasion as the Chief Guest. 

Central Bank Governor Dr. Indrajit Coomaraswamy

SEC Chairman Ranel T. Wijesinha

SEC Assistant Director (Capital Market Education & Training) Suneth Perera

SEC Director General Vajira Wijegunawardane

The SEC established CMET in 2008 as the training arm to provide professional education and training to enhance the knowledge and skill levels of market professionals, investors, issuers and market institutions. Since its establishment, CMET’s key focus has been the introduction and implementation of the qualification framework (QF) for capital market professionals with the intention of enhancing the level of financial literacy and professionalism among practitioners, stakeholders and the general public of Sri Lanka.

Delivering the opening remarks at the ceremony, SEC Director General Vajira Wijegunawardane stressed on the importance of the QF for capital market professionals. He stated that the QF intends to ensure a minimum level of competency and serves as a quality standard for investment advisors in the stock broking industry in Sri Lanka. While appreciating the requirement of a professional qualification for all practitioners in the capital market, he also emphasised on the need of ethical conduct by such practitioners. 

Addressing the gathering Wijegunawardane also stated that the SEC revised the QF in 2018 considering the developments that have taken place in the securities industry over the past 10 years. The revised Certificate in Capital Markets program of the QF now consists of five different levels of certifications in which three modules have been made mandatory. Thus the framework addresses the future developments of the capital market and the needs for the Sri Lankan economy in general.

SEC Chairman Ranel T. Wijesinha making special remarks at the ceremony and addressing especially the award recipients stated that they should become globally employable and mobile (GEMs) professionals. Commenting further He stated that honesty, integrity, independence and objectivity are the value system that a professional should possess beyond their qualification. He further stated that these are the characteristics that a true alumni member of CMET should uphold to fulfill the expectations of the SEC and the industry in general. 

Commenting on the industry he said that the capital market has an unrealised potential and has a national role to play whereas in relation to the regulation of the industry he emphasiszed that the SEC has enhanced the scope and effectiveness of regulation and would ensure strict enforcement action against violators of SEC regulations. 

Commenting on unit trusts he stated that the industry should keep in mind that they cater to the unsophisticated market and that their presence should be felt around the country whereas in relation to margin providers he stressed that the margin providers should conduct their function with a greater degree of responsibility.

Addressing the gathering and delivering the keynote at the ceremony Dr. Coomaraswamy explained the present status of the economy. He emphasised on the need of increasing Government revenue to at least 16.5% of the GDP. He stressed that the challenge is to increase Sri Lanka’s revenue and at the same time boost exports.

Comparing the non-concessional commercial debt which was 3.9% of the total debt in the year 2005, he emphasised on its significant increase to 54.8% of the total debt at present. The main reason behind such increase is to finance the budget deficit with commercial loans since Government revenue has continuously declined. 

Commenting on the current account deficit which is around 3.3% of the GDP at present, he stated that it has to be brought down to a manageable level of 2% of the GDP.  Dr. Coomaraswamy further added that we are a country with twin deficits, i.e. a budget deficit and a current account deficit where the financing of such deficits have become challenging. 

Commenting on the importance of the capital market, he stated that the present state of over dependency on banks to provide capital, mainly to the private sector, has to be changed by having a liquid and robust capital market.

Comparing the market capitalisation to the GDP in regional countries, he emphasised on the need of increasing it to a sizeable level. Dr. Coomaraswamy appreciated the efforts taken by the SEC in developing the capital market such as the multi-currency board, formulation of a new SEC Act, demutualisation of the Colombo Stock Exchange, amendments to the Takeovers and Mergers Code and the proposal to list State-Owned Enterprises in the CSE.   

The programs conducted under the QF include the Certificate in Capital Markets and Registered Investment Advisor programs which are conducted for investment advisors of stock broking companies, a Diploma offered jointly with the Chartered Institute for Securities & Investment, UK targeting mature industry practitioners, and a Certificate in Unit Trusts for employees attached to the Unit Trust industry. 

Each of these programs take into account the challenging circumstances faced by the Sri Lankan capital market and associated industries and aims to ensure that professionals practicing in the industry possess the competencies essential to conduct their activities with integrity.

Over 100 students received their awards at the ceremony.