Capital market content to be integrated into proposed financial literacy curriculum

A seminar on ‘Financial Literacy’ was held on 18 July at the Education Ministry, 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 Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha Fernando and conducted by Securities and Exchange Commission of Sri Lanka (SEC) Chairman Senior Professor Hareendra Dissabandara. The event was held under the patronage of Prime Minister and Education, Higher Education and Vocational Education Minister Dr. Harini Amarasuriya.

The seminar was attended by senior officials from the Education Ministry, 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.

Education, Higher Education and Vocational Education Ministry Secretary Nalaka Kaluwewa 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. Emphasising 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.”

Kaluwewa 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 G.C.E. Ordinary Level, assessed at the national level.

SEC Chairman Senior Professor Hareendra Dissabandara emphasised 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.”

Prof. 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 capitalisation 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 CSE,” 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 CSE and invested $ 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 utilisation.

The SEC Chairman 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 emphasised that curriculum reforms must bridge this gap by going beyond theory to include practical applications that foster real-world financial skills.

He also emphasised the importance of adapting these reforms to the Fourth Industrial Revolution and understanding the behavioural 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 the grassroots level.

Speaking at the seminar, Prime Minister and Education Minister Dr. Harini Amarasuriya 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, Dr. Fernando emphasised 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, CSE Chief Executive Officer Rajeeva Bandaranaike 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,” Bandaranaike stated. “If we are to meaningfully grow the capital market, improving financial literacy must be a national priority.”

Delivering the vote of thanks, Finance Ministry Director General – Corporate Affairs Dr. Sulakshana Jayawardena emphasised 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 towards 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 Education and Higher Education Deputy Minister Dr. Madhura Senevirathne, CSE Chairman Dimuthu Abeyesekera, SEC Director General Chinthaka Mendis, Colombo Stock Brokers’ Association President Gihan Cooray, Unit Trust Association of Sri Lanka President Christine Dias Bandaranaike, and CFA Society of Sri Lanka President Rashmi Peiris Paranavitane.