More awareness on capital market needed - SEC Director

Gayan KANCHANA

The conventional banking industry and its sub sectors in the country, are about to mature now and it’s time to educate the public more about Capital market Securities and Exchange Commission of Sri Lanka Director Prof. Harendra Dissabandara said.

The bankers’ duty is to educate the public about the capital market and direct them. Even though we have better development in the capital market our average capital market penetration is low he said.

Speaking at the 23rd anniversary convention of the Association of Professional Bankers Sri Lanka, on Banking foresight shaping integrated development,” he said, capital market in Sri Lanka can be named as the post war capital market. The age of our capital market is only two and half or three years. After the dawn of peace more public and private sector investors have engaged with the capital market. But during the last 30 years, no one wanted to make big investments in the capital market,” he said.

Prof. Dissabandara said, “Sri Lanka’s post war capital market has four main pillars in investors, listed companies (Issuers), brokers, market institutions (SEC and CSE).

The falling interest rates inflation rate and unemployment rate and the Developing GDP rate has led to investor confidence, listed companies’ ability, broker’s facilitation and market institutions involvement.

To develop the post war capital market in Sri Lanka it’s necessary to conduct investor education programme, open more CDS accounts, increase the number of trades and new IPOs to the system.

There are major initiatives after the war in the capital market such as market expansion in to rural areas like Vavuniya,Anuradhapura,Badulla and Embilipitiya, more market development and awareness creation especially in North and East regions.

“Seven broking companies have already opened branches in Jaffna and Vavuniya and others will follow soon,” he said.