Budget 2027 backs stock market listings for SMEs

The Securities and Exchange Commission of Sri Lanka (SEC) warmly welcomed the government’s Budget 2027 and is particularly encouraged that two proposals submitted and consistently advocated by the SEC have been recognised and incorporated into the national budget framework: ‘A Share for Everyone’ and the SME Listing Support Mechanism. 

“These initiatives represent a significant milestone in our collective efforts to deepen Sri Lanka’s capital market, broaden investor participation and strengthen the link between economic growth and capital formation,” a statement issued on Budget 2027 by SEC Chairman Senior Prof. Hareendra Dissabandara stated. 

The powers, duties and functions of the SEC include advising the government on the development of the securities market and assisting in the effective implementation of the policies and programmes of the government, with respect to the securities market. 

“It is in this capacity that the SEC put forward these proposals and we are pleased to see them taken forward,” it further stated.

The SEC has long emphasised that a vibrant capital market must be accessible to all segments of society. 

The introduction of ‘A Share for Everyone’, under the vision of ‘Let’s Know, Let’s Learn, Let’s Invest’, is a groundbreaking step toward cultivating a new generation of investors. 

By providing the eligible Advanced Level students with an opportunity to enter the capital market and gain firsthand exposure to investing, the programme will enhance financial literacy, promote long-term wealth creation and foster a culture of informed investment among young Sri Lankans.

Equally important is the introduction of the SME Listing Support Mechanism. The small and medium enterprises (SMEs) are the backbone of Sri Lanka’s economy, contributing significantly to employment generation, innovation and regional economic development. 

Supporting the SMEs to access capital through stock market listings will provide them with new avenues for growth, improve corporate governance standards, enhance transparency and create a broader range of investment opportunities for the public.

At present, participation in the capital market remains relatively low compared with the country’s full potential. The two initiatives directly address this challenge from both the supply and demand sides. 

While ‘A Share for Everyone’ aims to expand the investor base and build a stronger investment culture, the SME Listing Support Mechanism will encourage more businesses to enter the market, thereby increasing the diversity and depth of investment opportunities available to Sri Lankan investors.

The SEC is particularly pleased by the government’s recognition of the important role the capital market can play in Sri Lanka’s economic transformation. A broader investor community and a wider range of listed companies will contribute to improved capital mobilisation, increased financial inclusion, enhanced market liquidity and stronger long-term economic resilience.

“We also appreciate the commitment demonstrated through the allocation of resources for these initiatives and the collaborative approach involving the Colombo Stock Exchange and other market stakeholders. 

This partnership reflects a shared vision of building a more inclusive, dynamic and accessible capital market ecosystem that benefits students, entrepreneurs, businesses, investors and the wider economy.”

The SEC looks forward to working closely with the Finance Ministry, Colombo Stock Exchange, market intermediaries, educational institutions and industry stakeholders to ensure the successful implementation of these programmes. 

“We are confident that the measures announced in Budget 2027 will serve as catalysts for a new era of capital market participation and contribute meaningfully to Sri Lanka’s economic growth and prosperity.”

The SEC extends its sincere gratitude to President and Finance, Planning and Economic Development Minister Anura Kumara Dissanayake, Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando, Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe and Treasury Secretary Dr. Harshana Suriyapperuma for their support, guidance and willingness to consider the SEC’s proposals.

“These are not merely budget proposals. They are investments in Sri Lanka’s future investors, future entrepreneurs and future economic growth. The SEC is proud that these long-standing proposals have been taken into consideration and we remain committed to ensuring their successful implementation for the benefit of the nation.”

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