SEC aims for balanced market growth with strong oversight: Prof. Dissabandara

The newly appointed Chairman of the Securities and Exchange Commission (SEC) of Sri Lanka, Senior Professor Hareendra Dissabandara stressed efforts would be made to strike a balance between market development and robust regulatory oversight, with the aim of creating a secure, fair, and efficient capital market.

“Ensuring that Sri Lanka’s capital market operates in a secure, fair, and efficient manner is our foremost responsibility. However, we must also encourage innovation and growth, creating an environment that supports sustainable economic development,” Dissabandara said in his first public message since his appointment.

While emphasising the critical importance of a dynamic and transparent capital market to Sri Lanka’s economic progress, he noted priorities include restoring investor confidence, enhancing market operations, and laying a foundation for long-term growth that aligns with global standards.

In the short term, the SEC’s focus will be on addressing immediate challenges to ensure the smooth functioning of the market and stabilising investor sentiment. 

Dissabandara said the medium-term strategy will aim to bring transformative changes to the capital market. This includes demutualising the Colombo Stock Exchange (CSE), expanding the corporate debt market, and introducing innovative investment products to diversify opportunities for investors.

The SEC is also looking to encourage more public and private listings, attract foreign and local funds, and strengthen the collective investment scheme by improving education and awareness. 

Plans to establish a central counterparty mechanism and a multi-asset derivatives exchange are part of efforts to modernise market infrastructure and improve efficiency.

Dissabandara stressed that improving the regulatory framework and adopting digital transformation will be central to achieving the SEC’s goals. Additionally, he highlighted the need for robust risk management practices to ensure market stability, alongside measures to make Sri Lanka’s capital market an attractive destination for global investors.

Looking further ahead, the SEC’s long-term strategy will focus on adapting the capital market to meet the needs of future generations. 

“We are unwavering in our commitment to uphold honesty, transparency, and the highest ethical standards. By fortifying our regulatory framework and embracing RegTech and other innovations, we strive to foster a market that not only operates with efficiency but also safeguards investor interests across all levels,” he said.

Dissabandara called on all stakeholders—investors, issuers, and financial professionals—to support SEC’s vision of a shareholding democracy. He said he was confident the capital market could play a vital role in reducing Sri Lanka’s reliance on debt while driving innovation and economic growth.