SEC Chairman highlights stronger regulatory framework and market development vision

Senior Professor Hareendra Dissabandara, Chairman of the Securities and Exchange Commission of Sri Lanka, emphasized the importance of a robust regulatory framework and long-term market development while addressing the Second National Capital Markets Symposium organized by the Bar Association of Sri Lanka.

Delivering the keynote speech at the event, Prof. Dissabandara highlighted that the Securities and Exchange Commission Act No. 19 of 2021 represents a major milestone in strengthening Sri Lanka’s capital market regulatory system. He noted that the Act provides modern regulatory tools and enhanced authority to guide the market towards greater resilience, transparency, and global alignment.

According to the SEC Chairman, the Act establishes a contemporary framework aimed at ensuring that Sri Lanka’s capital market operates in a fair, orderly, efficient, and transparent manner. He explained that these four pillars form the foundation of a strong capital market, ensuring equal treatment of investors, structured trading environments, improved resource allocation, and timely dissemination of accurate information.

Prof. Dissabandara stated that the Commission conducts rigorous gatekeeping, continuous monitoring, risk oversight, and advanced market surveillance to detect market manipulation and insider trading. These measures, he said, are essential to maintaining market integrity and strengthening investor confidence.

Investor protection remains a key priority under the new legal framework. The Chairman noted that the Act addresses information gaps, agency issues, and collective action challenges that often place retail investors at a disadvantage. By providing equal protection to both domestic and foreign investors, Sri Lanka enhances its credibility as an attractive investment destination, he added. He further noted that the Commission operates as a multidisciplinary body, bringing together professionals from finance, law, economics, accounting, banking, and business sectors. The Commission also includes representation from key institutions such as the Central Bank of Sri Lanka, the Registrar General’s Department of Sri Lanka, and the Institute of Chartered Accountants of Sri Lanka, ensuring diverse expertise in decision-making. Outlining the Commission’s powers, Prof. Dissabandara said the SEC licenses market institutions and intermediaries, oversees securities issuance and trading, regulates mergers and takeovers of listed companies, and ensures timely disclosure of information. The Act also empowers the SEC to investigate violations, impose sanctions, and refer cases for criminal prosecution where necessary.

Looking ahead, he said the SEC has adopted a long-term strategy under its Capital Market Master Plan, which includes several transformative initiatives aimed at modernizing the market, expanding the corporate debt market, introducing new financial products, strengthening investor education, and enhancing digital transformation. Prof. Dissabandara stressed that while regulation remains central to the SEC’s role, market development is equally important. He reaffirmed the Commission’s commitment to protecting investors while supporting innovation and sustainable growth in Sri Lanka’s capital market.

Source: Daily News