The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), in association with the Embassy of Sri Lanka to the Kingdom of Saudi Arabia, successfully convened an investor forum on Saturday 24^th January 2026 at the Radisson Blu Hotel, Riyadh Convention & Exhibition Center. Alongside the forum, the SEC and CSE facilitated a meeting with the Public Investment Fund (PIF) which is Saudi Arabia's main sovereign wealth fund.

The forum was organized to engage directly with the vibrant Sri Lankan expatriate community in the Kingdom and international investors, highlighting compelling opportunities within Sri Lanka's capital market following the country's successful exit from sovereign default and restoration of macroeconomic stability.

The forum was marked by the presence of several senior level policy officials, market leaders and market regulators including; Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL); Hon. Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development; H.E. Ameer Ajwad Ambassador of Sri Lanka to the Kingdom of Saudi Arabia.; Senior Prof D.B.P.H. Dissabandara, Chairman of the SEC; Mr. Ray Abeywardena, Director of CSE; and Dr. Naveen Gunawardane, Co-Founder and Managing Director of Lynear Wealth Management.

In his welcome address, H.E. Ameer Ajwad stated, that a significant opportunity remains in broadening public participation in the capital market of Sri Lanka. As financial literacy and investment awareness among potential investors are limited, the investor forum would serve to bridge the knowledge gap. The forum offered an excellent opportunity for first-time investors, overseas investors, and those seeking to enhance their knowledge, to learn how to invest prudently, manage risk, and build wealth with discipline and confidence. Ambassador invited participants to make full use of the presence of high-level authorities from Sri Lanka’s key financial institutions, such as the Central Bank of Sri Lanka, the SEC, and the CSE, and to explore investment opportunities in Sri Lanka’s capital market, not only as a pathway to financial growth but also as a meaningful contribution to Sri Lanka’s resilience and long-term prosperity.

Highlighting market performance, CSE Director, Ray Abeywardena stated, "The All-Share-Price-Index (ASPI) has experienced exponential growth and today, as we gather here, it sits over 23,800 points, representing a staggering 120% growth since October 2024, post the Presidential Election."

Emphasizing the investment opportunity, he noted, "To put that in perspective: An investment made in our equity market just over a year ago would have more than doubled in value." He added, "And as you are aware capital gains acquired in our market is free of tax."

On regional performance, he remarked, "The performance speaks for itself. I am pleased to highlight that in 2025, the CSE was the 3rd best performing market in the entire region." He elaborated, "We have demonstrated resilience, robust volume, and a full year growth of 42% on the ASPI and over 26% on the S&P SL20 in 2025."

Despite this exceptional performance, he highlighted a compelling opportunity: "Despite the surge, the CSE remains highly undervalued compared to our regional peers. From a valuation perspective, we present one of the most compelling propositions in Asia."

In his opening remarks, Senior Prof. D.B.P.H. Dissabandara, Chairman of the SEC, explained the strategic choice to host the forum in Dubai to engage the vibrant Sri Lankan diaspora community and showcase compelling investment opportunities in Sri Lanka's capital market. He outlined the SEC's three core mandates—protecting investor interests, promoting market development, and ensuring effective oversight—emphasizing the regulator's commitment to fostering a transparent, efficient, and inclusive capital market ecosystem that attracts global capital while channeling domestic savings into productive investment.

On the foundation of investor confidence, he emphasized: "In today's competitive global environment, investor confidence ultimately depends on trust—trust built through robust regulatory oversight, transparent governance structures, and the demonstrated ability to act swiftly and decisively when market integrity is at risk."

In a video address, Hon. Dr. Anil Jayantha Fernando, Minister of Labour and Deputy Minister of Finance and Planning, highlighted Sri Lanka's stabilization and strong performance in 2025, emphasizing achievements in political governance and economic recovery. He noted that macroeconomic and microeconomic indicators exceeded expectations, with the government maintaining strong public financial discipline and building a robust cash buffer to control financial markets and keep interest rates steady without volatility.

Underscoring this achievement, he stated: "If you look at the year 2025, all the macroeconomic variables, microeconomic indicators show that we have done that stabilization more than what we expected and achieved high performance throughout the year."

Adding a government perspective, Hon. Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development, emphasized Sri Lanka's transition into rapid economic growth following a disciplined recovery, with macroeconomic indicators moving firmly in the right direction. He highlighted comprehensive legal and technology-driven reforms to improve ease of doing business, alongside Sri Lanka's strategic positioning as a regional economic hub anchored by Port City Colombo and expanded maritime capabilities. He noted that value-added manufacturing and high-growth service sectors are gaining momentum, supported by preferential market access, while the expansion of SMEs is already generating above-average capital market returns.

Concluding with an invitation to the global investment community, he stated: "We invite global investors to explore the emerging opportunities in the Pearl of the Indian Ocean—a nation defined not only by its strategic location and economic potential, but also by its talented people and extraordinary natural beauty."

Providing the macroeconomic context, Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), presented Sri Lanka's economic outlook for 2026 and beyond. Despite the impact of Cyclone Ditwah in Q4 2025, he projected 2025 growth near 5%, with medium-term potential increasing to 6-7% through ongoing reforms. He announced that foreign reserves will reach USD 8 billion by year-end—built through foreign exchange earnings rather than borrowings, marking an unprecedented three consecutive years of reserve accumulation. He emphasized that the central bank has moved away from fixing currency levels, establishing a stable, flexible exchange rate regime that eliminates balance of payment crisis risks. He also noted that regulatory reforms, including single borrower limit exposure rules, will drive large corporates and state-owned enterprises to raise capital through the capital market.

Highlighting this historic milestone, he stated: "By end of this year we will hit USD 8 billion in reserves—not through borrowings or commercial borrowings, but through foreign exchange earnings of the country. We never had in the history this kind of continuous three years of reserves. That will be the situation going forward. That is the stability and predictability of currency."

Providing a market perspective, Dr. Naveen Gunawardane, Co-Founder and Managing Director of Lynear Wealth Management, presented on "Sri Lanka Equities: Navigating the Next Phase of Growth." He highlighted that IMF-supported reforms have led Sri Lanka to a new paradigm in macroeconomic management, creating conditions for extended macro stability with market-driven interest rates and currency. He noted that this shift—moving from a history of macro instability—will likely drive domestic institutional and retail investors to increase allocations to equities and real estate. Despite the recent rally, he emphasized that Sri Lanka's equity market remains structurally undervalued and under-invested by foreign investors, with LYNEAR's coverage universe of 45 stocks trading at a 1-year forward P/E of 9.4x, and the banking sector at 0.9x estimated December 2026 book value.

Emphasizing the transformative nature of recent reforms, he stated:  "Under the IMF program, Sri Lanka has implemented a set of long-overdue reforms that has led the country to a new paradigm in macroeconomic management. We believe that with these reforms in place, the country can experience an extended period of macro stability, even beyond the tenure of the current IMF program."

The principal component of the forum was a high-level panel discussion themed "Sri Lanka Equity Market Outlook," moderated by Mr. Rajeeva Bandaranaike, CEO of the CSE. Panelists shared insights on the market's resilience and potential, showcasing recent policy reforms, improved investment infrastructure, and a strengthened ecosystem that supports sustainable investment as Sri Lanka progresses through 2026.” Participants also got the opportunity to network with Sri Lanka’s leading stock brokering firms, and directly pose queries to the CSE and SEC, in the networking event that followed the forum.

This forum is part of a series of strategic engagements aimed at expanding dialogue with international and diaspora investors. Following a recent forum in Dubai, the Riyadh event reflects the growing confidence in Sri Lanka's economic revival and capital market prospects, while providing direct access to information on long-term investment avenues through the CSE.