Sri Lanka to unveil capital market reforms in upcoming budget

Deputy Finance and Labour Minister Dr. Anil Jayantha Fernando outlined on October 27 that the forthcoming national budget will introduce major initiatives designed to reinvigorate Sri Lanka's capital market. The announcements signal government intent to move beyond crisis management and establish conditions for broader economic expansion.

The Deputy Minister emphasised that the budget proposals represent a deliberate policy shift toward activating growth mechanisms in the economy. The timing of these announcements comes as Sri Lanka continues its recovery from economic challenges in recent years.

Among the anticipated measures is the potential listing of selected state-owned enterprises on the capital market, a move intended to broaden investment opportunities and improve market liquidity. Such listings could provide additional revenue sources for the government while offering investors expanded portfolio options.

The proposed reforms reflect government efforts to modernise Sri Lanka's financial infrastructure and create conditions for sustainable economic development. Officials have signalled that these capital market initiatives will complement other policy measures in the upcoming budget to support the country's economic trajectory.

Photo: The World Trade Center twin towers in Colombo, home of the Colombo Stock Exchange, February 2026. Dudva via Wikimedia Commons (CC0).