Colombo Stock Exchange’s educational initiatives and efforts to enhance financial literacy in Sri Lanka

Colombo Stock Exchange (CSE) Education Academy Manager Tharaka Amarasena discusses the enhancement of financial literacy and the education initiatives by the Colombo Stock Exchange, and how these programs are designed to create tactical investors who can navigate the complexities of the financial market with informed, strategic decisions.

Q: What is the importance of financial literacy?

Financial literacy is essential for any individual, regardless of whether they are in the financial industry. The advantages of financial literacy go beyond simply accumulating wealth; rather, it can be further utilised to ensure you make informed financial decisions, enabling you to effectively minimise risk while maximising benefits. 

The CSE understands financial literacy to be a competency and a skill that can be taught through continuous practice and meticulous application of the theory. It also allows you to harness the asset that is personal financial planning which can aid you in working towards achieving total financial freedom in the future.

Financial literacy enhances your mental competency and understanding of behavioural finance, helping you avoid making poor financial decisions that can be detrimental.

Q: How has the CSE contributed to the betterment of financial literacy in Sri Lanka? 

There are three aspects in which the CSE contributes to enhancing financial literacy in Sri Lanka. First, focusing on school children, the Securities and Exchange Commission of Sri Lanka (SEC) and CSE have had multiple discussions at different levels with the education ministry and have successfully come to an understanding to include financial literacy related subject matter in the 2025 curriculum. This will guarantee all students graduating from secondary education will leave with a basic knowledge of the capital market and its products.

Additionally, the Capital Market Clubs initiative provides A/L students with advanced financial literacy opportunities. Capital Market Clubs (CMCs) were established in hundred different schools in 2023, a collaborative effort involving the Presidential Secretariat, Ministry of Education, SEC, and CSE. There are plans to establish yet another hundred CMCs in the coming year as well. 

The Capital Market Club activity plan provides students with training in personal financial planning, gain hands-on experience in researching, financial thinking, and investing. We have also initiated an inter-school quiz competition on Capital Markets in collaboration with the SEC and have plans to conduct seminars, introduce a virtual stock market game as well as conduct an educational tour of leading financial institutions.

Secondly, the CSE focuses on undergraduates as potential investors. The CSE has signed Memorandums of Understanding (MoUs) with several state universities and is in the process of signing with others, aiming for collaborative efforts in education, research, innovation, inventions, and entrepreneurship. These MoUs go beyond simply disseminating knowledge as we work toward cultivating a mindset shift among students, from job seekers to job creators.

And finally, the CSE is focusing on enhancing the available options in advancing financial literacy for professionals who wish to pursue specialised higher education, through the CSE Education Academy.

Q: What is the CSE Education Academy, and what does it have to offer those interested in enhancing their knowledge on the capital market?

The CSE Education Academy is the education arm of the Colombo Stock Exchange, aimed at promoting skills, talent, and competence-based education, particularly targeting the youth of Sri Lanka, to mould them as multidimensional personalities poised for the global market.

The CSE Education Academy aims to widen the scope of opportunities available for students through its collaboration with state universities. This includes the introduction of capital market-related modules, aimed at enhancing the financial literacy of state university students, as well as plans to introduce several new professional diploma courses targeting different sectors. The CSE Education Academy currently offers a prestigious Diploma in Financial Markets (ADFM).

All CSE Education Academy courses ensure students are equipped with skills, competency, and talent beyond theoretical knowledge. Instead of traditional exams, students complete assignments applying theoretical concepts to case studies. This approach ensures students apply theory to practical scenarios, rather than just memorising information.

Finally, building on my previous mention of our educational initiatives for professionals, we are leveraging the CSE’s branch network to promote educational initiatives at the regional level in collaboration with several professional institutes. This includes facilitating lectures for SLIM courses in all three languages, ACCA and CIMA courses, and integrating capital market-related subject matter into their programs. Those enrolled in CSE Education Academy programs can also receive special exemptions from relevant courses in CIMA and CMA. For more information, please visit: www.cse.lk or contact the CSE Education Academy on 011 2356 531/515.