The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) successfully concluded the ‘Invest Sri Lanka’ Investor Forum in Dubai on 22nd January 2026 at the Sheraton Grand Hotel, as part of a series of roadshows across the Middle East.
The forum, targeting the international investment community and Sri Lankan diaspora, served as major events in Dubai and Abu Dhabi to spotlight Sri Lanka’s emergence as a rising frontier market with zero capital gains tax amid a sustained rally that has delivered rapid growth over the past few years.
The forum brought together high-level government officials, regulators, leading stock brokering firms, international investors, fund managers, banks and the Sri Lankan diaspora to foster connections and promote long-term capital flows into Sri Lanka and featured a panel discussion and presentations from key speakers. Alongside the forums, the SEC and CSE facilitated strategic meetings with several prominent regional institutions, including UAE state-owned global investment firm Mubadala Investment Company, Abu Dhabi Securities Exchange and Chamber of Commerce. Additionally, meetings were held between the Central Bank of Sri Lanka and leading UAE-based banks to discuss the resumption of foreign credit lines to Sri Lanka.
The Dubai forum was marked by the presence of several senior level policy officials, market leaders and market regulators and facilitators, including; Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL); Hon. Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development; Prof. H.E. Arusha Cooray, Ambassador of Sri Lanka to United Arab Emirates; Hon. Alexi Gunasekera, Consul General of Sri Lanka to Dubai & the Northern Emirates; 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 (Pvt) Limited.
In her welcome address, Prof. H.E. Arusha Cooray, Ambassador of Sri Lanka to United Arab Emirates stated, “The bi-lateral relationship between SL and the UAE has grown significantly in the recent past, entering a new phase of friendship and cooperation. Last year posed significant challenges for Sri Lanka following Cyclone Ditwah, the impacts of which continue to be felt across the country. I would like to take this opportunity to express Sri Lanka’s sincere gratitude to the UAE government and its people, for the support rendered during the cyclone.“
Highlighting the strength of bilateral trade ties, the Ambassador noted that the UAE is Sri Lanka’s largest trading partner in the Middle East, and was Sri Lanka’s 7th largest export destination with exports valued at USD 335 Mn in 2025. She further added that the UAE was Sri Lanka’s 3rd largest import origin, with imports valued at USD 1.3 billion also last year.
Speaking on investment opportunities, she emphasized that the UAE is additionally the sixth largest investor in Sri Lanka and as identified, there is large potential in several areas including logistics, energy, ports, IT, agriculture, hospitality, tourism, and real estate.
She noted, “Our focus has primarily been on FDI, but the presence of this delegation signals growing potential for portfolio investment as well.“
Turning to labor cooperation, she pointed out that labour is another key area of cooperation, given the 350,000 Sri Lankans residing in the UAE.
On remittances, she stated that the UAE was also the highest or second-highest source of remittances to Sri Lanka during the first three quarters of 2025.
Reflecting on diplomatic progress, the Ambassador remarked that on the diplomatic front, the past year alone has seen a number of high level visits.
She elaborated, “The Investment Promotion and Protection Act between Sri Lanka and the UAE was signed during the visit of the President of Sri Lanka, Mr Anura Kumara Dissanayake to the UAE last year, and the National Chamber of Commerce of Sri Lanka and the Federation of the UAE Chambers of Commerce and Industry signed an MoU in April 2025, during the visit of the Deputy Prime Minister and Foreign Minister of the UAE to Sri Lanka, His Highness Sheikh Abdullah bin Zayed Al Nahyan.“
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 Colombo Stock Exchange 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.“
Speaking on capital raising activity, he stated, “I am pleased to state that in 2024, USD 568 million was raised in the Capital Markets on the CSE and a further USD 408 million in 2025 bringing total capital raised to a sizable USD 976 million. He affirmed, “I can state confidently that the momentum is certainly encouraging.“
On valuation and investment appeal, he highlighted, “Despite the surge, the Colombo Stock Exchange remains highly undervalued compared to our regional peers.” He emphasized, “From a valuation perspective, we present one of the most compelling propositions in Asia.“
Concluding on market metrics, he noted, “We ended 2025 with a market Price-to-Earnings (P/E) ratio of 10.7 times which still makes us the second cheapest market in terms of Price-to-Earnings in the region.“
In his opening remarks, Senior Prof. D.B.P.H. Dissabandara, Chairman of the SEC, highlighted the rationale behind the forum’s location, stating, “We chose to host the Invest Sri Lanka Forum in Dubai to engage directly with this vibrant community and highlight the compelling opportunities available within Sri Lanka’s capital market, including avenues for long-term investment through the Colombo Stock Exchange.“
Speaking on the SEC’s commitment, he emphasized, “As the Securities and Exchange Commission of Sri Lanka, we remain firmly committed to fostering a transparent, efficient, and inclusive capital market ecosystem. He added, “Today’s forum is not merely about investment opportunities; it further reflects our collective commitment to building a resilient financial infrastructure that attracts global capital while serving the aspirations of our people.“
Outlining the SEC’s mandate, he stated, “The SEC is entrusted with three core mandates: protecting investor interests, create, maintain and regulate a fair, orderly, efficient and transparent securities market and ensure the maintenance of high professional standards in the provision of services in relation to the securities market.” He noted, “Over the years, Sri Lanka’s securities market has played a pivotal role in channeling domestic savings into productive investment, supporting capital formation and economic growth.“
On building investor confidence, he remarked, “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 to the gathering, Hon. Dr. Anil Jayantha Fernando, Minister of Labour and Deputy Minister of Finance and Planning, stated, “In the year 2025, we navigated it with stabilization and high performance in many areas.” He elaborated, “In the field of political stabilization, we have demonstrated good governance, clean politics, openness, professional conduct and maintenance of diplomatic relations to showcase how best we should address and maintain uphold the public interest.“
Addressing economic achievements, he remarked, “When it comes to economic stabilization, which was the biggest challenge for us because we wanted to take the country out of the economic abyss.” He emphasized, “If you look at the year 2025, all the macroeconomic variables, microeconomic indicators confirm we’ve not only achieved the stabilization we targeted but exceeded expectations with consistent high performance throughout the year.” He underscored the Governments Fiscal discipline: “We’ve maintained rigorous public financial management, which enabled us to build a robust cash reserve. This has allowed us to regulate financial markets effectively and keep interest rates stable, avoiding fluctuations and unnecessary volatility.“
Adding a government perspective, Hon. Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development, stated: “Sri Lanka is entering a phase of rapid economic growth following a strong and disciplined recovery from recent economic uncertainty. Today, the economy is increasingly predictable, with key macroeconomic indicators moving firmly in the right direction.”
Elaborating on government initiatives, he emphasized, “The new government is actively improving the ease of doing business through comprehensive legal and technology-driven reforms, creating a stable, transparent, and investor-friendly environment.” He further highlighted that, “Sri Lanka is strategically positioning itself as a regional economic hub, anchored by the development of Port City Colombo and the expansion of its maritime and logistics capabilities across the Indian Ocean trade routes.“
On sectoral growth, he noted that value-added manufacturing and high-growth service sectors are gaining momentum, supported by preferential access to major global markets. He added, “At the same time, the government is accelerating efforts to secure additional market access agreements, further strengthening export competitiveness.”
Speaking on investment returns, he stated that the expansion of industry and the rapid growth of small and medium enterprises are already translating into above-average returns in the capital markets, presenting compelling opportunities for both strategic and portfolio investors.
Concluding his address with an invitation to investors, he said, “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), briefed the forum in a segment dedicated to the economic outlook of Sri Lanka in 2026 and beyond. He stated, “We all know Quarter 4 in 2025 there was kind of a shock in terms of Cyclone Ditwah, still the 2025 growth was closer to 5%. Looking ahead“, he noted, “But going forward in 2026 we’ll get back to the same trend in growth because clearly the potential is there.” He emphasized, “With all the reforms that was basically mentioned by two ministers will enhance the potential from 4% to 5%, medium term maybe 6% to 7%.“
Turning to foreign reserves, he highlighted, “We have been able to build reserves. Those are stable reserves, not necessarily based on someone else’s borrowing.” He announced, “By end of this year we will hit USD 8 billion Reserves. Not through borrowings or commercial borrowings, through foreign exchange earnings of the country. Reflecting on this achievement“, he remarked, “We never had in the history this kind of continuous three years of reserves.” He assured, “That will be the situation going forward. That is the stability and predictability of currency.“
On avoiding past mistakes, he explained, “Before 2022 a mistake that we saw is that the central bank tried to fix the currency at some level. And we ran down all the borrowed reserved and ended in a crisis.” He reassured investors, “So that I think we can assure you that won’t be the situation in the future. There will be no crisis. There is no balance of payment crisis.” He added, “We will have a stable flexible external regime that will take care of the demand for external side both imports and exports.“
On regulatory reforms and capital market implications, he noted, “We brought in the regulation where the single borrower limit exposure should be brought down.” He explained its significance to the capital market, so the large corporates that are SOEs should be able to raise their capital through capital markets.
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” and remarked, “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.” He emphasized that Sri Lanka is already experiencing a period of macro stability, and 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. He explained, “In such an environment, one would expect to see stable and market driven interest rates and a stable and market driven currency.“
Reflecting on the country’s economic trajectory, he stated, “Sri Lanka has been a country where macro instability has been the norm rather than the exception.” He added, “We believe that this new paradigm will lead domestic investors, both institutional and retail, to increase, or in most cases to add, allocations to domestic equities and real estate. On valuation and investment opportunities“, he noted, “Despite the recent rally, Sri Lanka’s equity market remains structurally undervalued and is under-invested by foreign investors.” He concluded, “Based on LYNEAR’s coverage universe of 45 listed stocks, we believe the market is currently trading at 1-year forward PER of 9.4x, with the banking sector trading at 0.9x estimated December 2026 book value.“
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.
In his vote of thanks, Hon. Alexi Gunasekera, Consul General of Sri Lanka to Dubai & the Northern Emirates, mentioned that all the presenters had imparted a shared future for Sri Lanka and the UAE.
He emphasized, “Coupled with the recently signed Agreement on Promotion and Protection of Investments between Sri Lanka and the UAE when our president visited UAE last year, we are ready to partner with you all for growth, economic development and for a winning situation.” He concluded, “So just don’t take this event as a conclusion of conversation. Take this event as a beginning of a long-standing partnership that UAE and Sri Lanka will have.“
The forum came in the same week that the Sri Lankan capital market broke three milestones, closing trading for the week with the record highest All-Share-Price-Index (ASPI), S&P SL20, and market capitalization. Sri Lanka’s capital market has delivered strong performance over recent years, with notable growth in index returns, market turnover, and capital raising activities. The All-Share-Price-Index (ASPI) rose by 269% from 6,129.21 points in 2020 to 22,624.31 points in 2025. The ASPI and S&P SL20 posted returns of 41.89% and 26.64% respectively in 2025, with the year’s momentum marked with increased market turnover of LKR 1.23 Tn, and ending with a market cap of LKR 8.068 Tn. Furthermore, Sri Lanka’s equity market stands above regional competitors with a market Price-to-Earnings (P/E) ratio of 10.73x as of the end of 2025, offering strong upside potential for investors seeking frontier market exposure. Last year saw the Sri Lankan capital market prosper amidst significant reforms and positive economic developments, making it an attractive platform for investment and providing opportunities for institutional investors and fund managers globally.
Theses forums form part of a broader initiative to engage the international investor market in the healthy growth currently underway in the capital market, and to empower such investors to exercise allocation that support both growth and portfolio diversification in the rising frontier market of Sri Lanka. Both the SEC and CSE are committed to sustaining this effort through continuous engagement and the convening of similar strategic forums, which are expected to continue for the remainder of 2026.
