Sri Lanka’s SEC Welcomes 2027 Budget for Incorporating SME Listing & Broadening Participation

The Securities and Exchange Commission of Sri Lanka (SEC) welcomed the Government’s 2027 Budget following the adoption of two of its key policy proposals, “A Share for Everyone” and the SME Listing Support Mechanism.

According to the SEC, integrating these measures into the national budget framework is a significant step toward deepening the local capital market, broadening participation, and driving economic growth through stronger capital formation.

Statement by the Chairman of the Securities and Exchange Commission of Sri Lanka (SEC) on Budget 2027

The Securities and Exchange Commission of Sri Lanka warmly welcomes the Government’s 2027 Budget and is particularly encouraged that two proposals submitted and consistently advocated by the SEC have been recognized 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.

The powers, duties and functions of the Commission 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.

The SEC has long emphasized 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 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. Small and Medium Enterprises are the backbone of Sri Lanka’s economy, contributing significantly to employment generation, innovation, and regional economic development. Supporting 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. These 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 mobilization, 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 Ministry of Finance, the 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 His Excellency Anura Kumara Dissanayake, President and Minister of Finance, Planning and Economic Development; Hon. Dr. Anil Jayantha Fernando, Deputy Minister of Finance and Planning; Hon. Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development; and Dr. Harshana Suriyapperuma, Secretary to the Treasury, 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.”