Deputy finance minister reveals capital market boosting proposals in upcoming budget

Deputy Finance and Labour Minister Dr. Anil Jayantha Fernando revealed proposals to boost Sri Lanka's capital market during an institutional investor forum held on Oct. 27. The upcoming national budget will focus on transitioning the economy from mere stabilization to active growth, according to the Deputy Minister. While macroeconomic stabilisation has largely been achieved, the government's attention now shifts towards productive investments, enhancing public infrastructure, and boosting capital formation.

A key aspect of these measures involves structural reforms for State-Owned Enterprises (SOEs), with plans to list select enterprises on the Colombo Stock Exchange (CSE) under a unified umbrella. This move aims to foster greater public-private collaboration and grant these enterprises autonomous decision-making capabilities. Deputy Minister Fernando emphasized that allocating substantial capital expenditure, targeting around 2 trillion rupees, would be directed towards key infrastructure projects such as roads, railways, and rural connectivity improvements.

Additionally, the government intends to rationalize the tax structure, upholding principles of fairness, simplicity, and convenience while managing fiscal consolidation targets. Ensuring a transparent, rules-based environment that protects retail investors, combats market manipulation, and cultivates long-term confidence in Sri Lanka's financial ecosystem will require close collaboration between regulatory authorities and market stakeholders.

The Deputy Minister made these remarks at the "From Resilience to Sustainable Growth" forum, organized by the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE).