Capital Market Content to Be Integrated into Proposed Financial Literacy Curriculum

A seminar on “Financial Literacy” was held on 18th July 2025 at the Ministry of Education, providing a platform for stakeholders involved in ongoing education sector reforms to contribute to the integration of financial literacy into the school curriculum. The initiative was spearheaded by Hon. Prof. Anil Jayantha Fernando, Minister of Labour and Deputy Minister of Economic Development, and conducted by Senior Professor Hareendra Dissabandara, Chairman of the Securities and Exchange Commission of Sri Lanka (SEC). The event was held under the patronage of Hon. Dr. Harini Amarasuriya, Prime Minister and Minister of Education, Higher Education and Vocational Education. 

The seminar was attended by senior officials from the Ministry of Education, National Institute of Education, Colombo Stock Exchange (CSE), and CFA Society of Sri Lanka, along with representatives from the Colombo Stock Brokers’ Association, and Unit Trust Association of Sri Lanka.

Mr. Nalaka Kaluwewa, Secretary to the Ministry of Education, Higher Education and Vocational Education, described the seminar as a landmark moment in implementing financial literacy in practical terms. “Although financial literacy has been widely discussed for some time, today marks a significant milestone as we begin to implement it meaningfully,” he said. Emphasizing the broader vision behind the initiative, he added, “This is not merely a curriculum revision,it represents a fundamental overhaul of the entire education system. Our goal is to nurture a generation of well-rounded students equipped with 21st-century skills.”

Mr. Kaluwewe announced that financial literacy and entrepreneurship will be introduced as a compulsory subject carrying one credit from Grades 6 to 9 and will be offered as an optional subject at the GCE Ordinary Level, assessed at the national level.

Senior Professor Hareendra Dissabandara, Chairman, SEC, emphasized that financial literacy comprises the knowledge, attitudes, and behaviours necessary for making informed financial decisions and achieving financial well-being.

Citing the World Economic Forum’s report “New Vision for Education”, he noted that financial literacy is one of the 16 core skills essential for students in the 21st century.

“Financial literacy is not only an essential life competency,” he said, “but also a national solution that can address economic crises and reduce structural imbalances. Unfortunately, it is still largely confined to those who have studied Commerce subjects, when in fact it should be accessible to all.”

Professor Dissabandara highlighted the current status of Sri Lanka’s financial sector, noting that it is valued at Rs. 33.2 trillion, with banking institutions accounting for 67% of the sector, while the capital market contributes a mere 2%. He pointed out that the market capitalization of Sri Lanka’s capital market stands at just 15.4% of GDP significantly lower compared to 1,040% in Hong Kong, 123% in India, 39% in Greece, and 19% in Hungary. Out of the 14.41 million adults in Sri Lanka, only 5% hold Central Depository System (CDS) accounts, and just 45,000 engage in one or two share transactions per month. Furthermore, out of nearly 200,000 registered companies, only 284 or 0.15% are listed on the CSE. He noted that this reflects a lack of financial literacy not just among individuals but also corporates.

“In 2024, Rs. 172 billion was raised at the Colombo Stock Exchange,” he remarked, highlighting the untapped potential of the capital market. Citing John Keells Holdings as a successful example, he noted that the company raised capital through the Colombo Stock Exchange and invested USD 1.4 billion in the landmark Cinnamon Life project, and encouraged the government to explore similar avenues for capital raising. He also referred to Tokyo Metro and BTS Thailand as international benchmarks for effective capital market utilization.

Professor Dissabandara stressed the urgent need to embed financial education in schools, pointing out that students are not taught how money works, how to manage personal finances, or how to use money for self-development, and emphasized that curriculum reforms must bridge this gap by going beyond theory to include practical applications that foster real-world financial skills.

He also emphasized the importance of adapting these reforms to the Fourth Industrial Revolution and understanding the behavioral patterns of Gen Z, Gen Alpha, and future generations.

In conclusion, he recommended a collaborative initiative between the SEC and CSE to establish investment units in schools or zones, rolled out in phases to raise financial awareness at grassroots level.

Speaking at the seminar, Hon. Dr. Harini Amarasuriya, Prime Minister and Minister of Education, highlighted the need to build economics and entrepreneurship on a foundation of human values, rather than solely monetary goals.

“True development must include ethical and spiritual growth,” she said. “Wealth is not only about money. A developed society must be economically, spiritually, and ethically sound.”

She noted that crimes such as corruption and fraud are often committed by highly educated individuals, underlining the need to integrate ethics into financial education.

“Entrepreneurs should not simply pursue profit, but care for society, the environment, and one another.”

Contributing to the discussion, Hon. Prof. Anil Jayantha Fernando, emphasized the importance of embedding financial literacy in school education.

“Many people fall victim to financial scams such as pyramid schemes due to a lack of financial understanding,” he said. “Ironically, financial fraud is often perpetrated by individuals who are financially literate—but ethically compromised. Along with financial knowledge, we must empower society with values to responsibly manage this knowledge.”

Addressing the gathering, Mr. Rajeeva Bandaranaike, Chief Executive Officer, CSE, highlighted the low level of investor participation in Sri Lanka, noting that only 700,000 individuals hold Central Depository System (CDS) accounts. Of these account holders, 80% are male and just 20% are female, while only 1% hold at least one share. Furthermore, 60% of investors are concentrated in the Western Province, reflecting significant regional disparities in market participation.

“A major reason for this low level of engagement is the lack of financial literacy,” Mr. Bandaranaike stated. “If we are to meaningfully grow the capital market, improving financial literacy must be a national priority.”

Delivering the vote of thanks, Dr. Sulakshana Jayawardena, Director General (Corporate Affairs) Ministry of Financeemphasized that financial markets are constantly evolving, and the curriculum must remain current and relevant to reflect these changes.

He stressed that imparting financial knowledge must go hand in hand with cultivating the right attitudes and perceptions toward the financial market.

“True financial literacy goes beyond facts and figures. It must foster a mindset that enables students to engage with markets confidently, ethically, and responsibly,” he concluded.

The seminar concluded with the SEC expressing its commitment to support the National Institute of Education (NIE) by providing input on the proposed financial literacy curriculum content. The SEC also pledged to assist in teacher training initiatives aimed at enhancing educators’ understanding and delivery of the new content, ensuring its effective integration into the classroom.

The event was also attended by Hon. Dr. Madhura Senevirathne, Deputy Minister of Education and Higher Education, Mr. Dimuthu Abeyesekera, Charman, CSE, Mr. Chinthaka Mendis, Director General, SEC, Mr. Gihan Cooray, President, Colombo Stock Brokers’ Association, Mrs. Christine Dias Bandaranaike, President, Unit Trust Association of Sri Lanka and Mrs. Rashmi Peiris Paranavitane, President, CFA Society of Sri Lanka.