📈 SEC Chief Calls for Capital Market Focus in Upcoming Budget

The Securities and Exchange Commission (SEC) Chairman has urged the Government to integrate capital market development into Sri Lanka's long-term economic strategy. • Growth Targets & Investment: Recent 4-5% economic growth is deemed insufficient; Sri Lanka must target sustained 7-9% growth backed by productivity, competitiveness, and increased equity/debt investments rather than relying solely on bank credit and government borrowing. • Budget Proposals & SOE Listing: Urged the Finance Ministry to support SEC-CSE proposals in the upcoming Budget to enable capital raising, attract long-term institutional investors, and consider listing commercially viable State-Owned Enterprises (SOEs). • CSE Performance & Market Stability: • Attributes recent All Share Price Index (ASPI) drops to Middle East geopolitical tensions, elevated international energy prices, foreign portfolio shifts, interest rate changes, and low liquidity. • Notes foreign outflows from equities coincided with inflows into Government securities. • Highlights a 40-year historical record of resilience (1985–2026) to reassure investors against panic-driven selling during thin trading periods. • Regulatory Warning: Warned market participants against exploiting thin liquidity or manipulating prices ahead of the Budget announcement, affirming that regulatory frameworks are active to penalize misconduct.