State-Owned Enterprises to Go Public? Proposal By Central Bank Chief

by Zulfick Farzan 27-03-2025 | 12:14 PM

COLOMBO (News 1st); Sri Lanka's Central Bank Governor is advocating for Capital Market expansion to boost the country's economic growth.

Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), speaking at the Invest Sri Lanka Capital Market Forum 2025 in Colombo, has emphasized the importance of expanding the capital market to facilitate the growth and development of state-owned enterprises and large corporates.

Dr. Weerasinghe outlined his vision for leveraging public ownership to enhance governance and create diverse investment opportunities for Sri Lankan citizens.

Dr. Weerasinghe highlighted the significant assets owned by the Sri Lankan state, developed over decades with taxpayer money.

He proposed that listing state-owned enterprises on the capital market would not only provide opportunities for public ownership but also bring essential governance measures into these businesses. "Offering public ownership while maintaining a certain amount of state ownership is the right move. This will provide more opportunities and foster market developments," he stated.

From an investor's perspective, Dr. Weerasinghe pointed out the limited investment opportunities available to the general public in Sri Lanka. He stressed the need for diverse investment options to enable citizens to invest their savings beyond fixed interest rates in the banking sector. "Capital market developments are crucial for offering regulated capital products and preventing people from falling into scams and pyramid schemes," he added.

"Because there's a lack of investment opportunities in different diverse instruments, people get into scams, people get into pyramid schemes, people get into unauthorised deposit-taking businesses, and people lose their money," he added.

Dr. Weerasinghe also addressed the challenges faced by large institutional investors like the Employees' Provident Fund (EPF), which currently invests primarily in government securities. He advocated for a more diversified and liquid capital market, with good companies, including state-owned enterprises, listed to provide better investment opportunities for funds like EPF and for retirees seeking higher returns.