SEC/CSE Drive to Scale Sri Lankan Tech via Capital Markets 📈

The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) recently hosted the "Seed to Scale" forum, urging over 60 ICT/BPM and tech firms to leverage the stock exchange for mid-to-long term growth. • Market Milestones • Market Capitalization crossed the LKR 8.5 Tn threshold in early 2026. • 2025 saw 25 total listings, including 6 new companies raising rapid expansion capital. • The ASPI and S&P SL20 hit record highs in January 2026, with the ASPI reaching 23,812.3 points. • Policy & Regulatory Shifts • Digital Economy: Authorities are considering a separate IT Board to offer lower entry barriers, reduced compliance costs, and better valuations for startups. • Tax Reform: Efforts are underway to eliminate cascading taxes on venture capital funds to attract foreign investment into the local ecosystem. • Capital Mobility: New facilities are expected for Foreign Direct Investment (FDI) to allow Sri Lankan firms to scale overseas while retaining headquarters and IP locally. • Strategic Highlights • Apparel & Textiles and other traditional sectors are being joined by a "success story" in tech, shifting from cost-based outsourcing to Intellectual Property (IP)-led growth. • Debt Innovation: 2025 introduced specialized instruments including Blue, Green, and Social Bonds to fund sustainable expansion.