CSE CEO praises President’s ‘Capital Market Clubs’ for schools as visionary investment

In a recent appearance on the ‘1O1 Katha’ programme produced by the Presidential Media Division, the Chief Executive Officer of the Colombo Stock Exchange, Rajiva Bandaranaike,

lauded President Ranil Wickremesinghe’s forward-looking initiative to introduce ‘Capital Market Clubs’ in schools. 
This initiative, he emphasised represents a pivotal investment in the future of the country.

Bandaranaike stressed the timeliness of President Wickremesinghe’s decision to foster financial literacy among school students, asserting that this demographic is ideally positioned for such promotion.  “We hope to introduce the stock market to students more formally through ‘Capital Market Clubs.’ In the first phase of this programme, 100 schools that have shown the best results in the commerce stream according to A-level results will be selected, and 100 capital market associations will be established in them. This is expected to give the students a comprehensive knowledge and understanding of the capital market, allowing them to gain theoretical and practical insights,” he said.

Acknowledging the dearth of knowledge about the capital market and financial literacy in schools, he underscored the importance of expanding this knowledge beyond the commerce stream, reaching students in fields such as arts, science, mathematics, and more. 
Bandaranaike elaborated on the programme’s components, detailing the allocation of Rs. 100,000 per school as capital, enabling schools to engage in profit-making activities. 

The most successful schools will receive rewards, including a unique opportunity for the top 10 students and their teacher in-charge of the highest-performing school to travel to Singapore and enhance their knowledge by observing and studying the stock market.
Highlighting the broader impact of enhancing financial literacy, Bandaranayake said, “As a country, we have to face some economic difficulties today due to the lack of financial literacy among the majority of us. In comparison with other countries, we are not in a satisfactory position regarding the financial literacy of school children, and that should be improved.” He also underscored the critical role of financial education in personal success and the potential for small and medium enterprises to join the stock market and obtain capital for growth. 

Bandaranaike emphasised the need to bring Sri Lanka’s stock market in line with developed economies and the significance of the stock market’s contribution to a country’s economy. 
“The capital market is widely used in developed economies like India. The market capitalisation of the stock market is calculated as a percentage of the gross domestic productivity. It is about 25 percent in Sri Lanka. In India, it is between 80 percent – 85 percent and 100 percent  in Malaysia,” he said. Concluding on an optimistic note, Bandaranaike praised the President’s decision to introduce digital financial literacy at the school level, highlighting the close relationship between school students and digital technology.