Sri Lanka’s securities regulator and stock exchange have stepped up efforts to bring State-owned enterprises into the capital market, as policymakers look to reduce reliance on Treasury funding and widen access to long-term financing.
A forum held in Colombo brought together more than 45 SOEs alongside government officials, investment bankers, and market participants to examine how public enterprises could raise capital through listed debt and equity instruments.
Authorities have identified structural weaknesses in the current SOE model, including funding constraints and governance gaps, which have limited operational efficiency and increased pressure on public finances. Capital market participation is being positioned as a way to address these issues while improving transparency and accountability.
Discussions at the forum focused on the mechanics of listing, the balance between State ownership and market participation, and the role of disclosure and financial reporting in building investor confidence. Participants also examined options such as employee share ownership structures and the potential to broaden public participation in national enterprises through equity offerings.
The engagement reflects growing momentum in Sri Lanka’s capital market, where listed entities have raised Rs. 560.58 billion through debt and equity instruments between 2020 and end-2025. The market has also seen the introduction of new instruments, including blue, green, social, and high-yield sustainable bonds, as well as Shariah-compliant securities.
Market expansion has been supported by a rising investor base, with the number of Central Depository System accounts surpassing one million, indicating increased retail participation.
Regulators have also introduced structural measures to facilitate SOE entry, including the Catalyst Board, which provides a more flexible listing framework designed to ease the transition for public enterprises into the market.
The forum included presentations and a panel discussion involving senior officials from the Securities and Exchange Commission (SEC), the Colombo Stock Exchange (CSE), investment banks, and listed corporations. The discussions emphasised aligning capital market integration with the service-oriented mandate of SOEs while strengthening financial discipline and access to alternative funding sources.