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Quality of capital formation seen as key to economic growth
['Sahan Weerasooriya']
The Island
The quality of capital formation is critical for Sri Lanka’s economic growth trajectory and the next take-off would be nothing but investment because without investments the country can’t expect rapid economic growth, Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha Fernando said.
“The capital market is a vital platform for national development and scattered, insignificant capital throughout the country cannot make a big push for the economy.
“If you really want robust capital formation and exponential growth, we need to bring them together to the capital market and close the gaps, the minister said.
“Transformation effect created stability in the country which began the journey of heading to economic growth and this twelve pillar programme would be an impetus to that target, Suriapperuma said.
Another cornerstone is the implementation of a Central Counterparty (CCP) mechanism, which went live in August 2025, to guarantee trade settlements and reduce counterparty risk, thereby strengthening market stability.