COLOMBO – Central Bank reports will be integrated to schools for discussion among students in a bid to improve finance literacy in Sri Lanka, President Ranil Wickremesinghe said inaugurating a Capital Market Club program in a school in Kandy.

The President’s Media Division (PMD) in a media release issued on Thursday (31) said the exercise was a strategic move to enhance technology and financial literacy among schoolchildren as part of Wickremesinghe’s plans to make Sri Lanka a developed country by 2048.

The Capital Market Club program was launched in Kandy’s Nugawela Central College on Monday (28) morning. A hundred schools have been selected for the initiative, with a seed fund of 10 million rupees allocated for the task.

According to the PMD, the Central Bank of Sri Lanka (CBSL) plans to introduce a comprehensive training program for teachers and student leaders, aimed at “bolstering awareness of the stock market and enhancing financial literacy among students across the nation”.

The program is said to be a collaborative one involving the central bank, the presidential secretariat, the ministry of education, the Securities and Exchange Commission, and the Colombo Stock Exchange.

“Our focus must now shift towards advancing without regressing into the abyss that threatens our nation’s progress. It’s imperative to decide whether we should persist with mid-20th century policies or chart a new course with fresh perspectives. Adhering to outdated methods would jeopardize our country’s very existence, considering the significant gap between our current state and our desired destination,” Wickemesinghe said in his inauguration speech.

“Equally crucial is ensuring that the upcoming generation, entrusted with the country’s future, does not inherit such a predicament. Thus, embarking on a technological journey becomes imperative,” he added.

Noting that introducing modern technology to Sri Lanka was important, Wickremesinghe said substantial efforts were already underway, both within the ministry of education and various research institutes and that determining the implementation of new technological methods, form blockchain technology to artificial intelligence and genome science, had become a pivotal task.

“Crucially, these advancements should reach rural communities. Our initiative to modernize agriculture aims to bring these technologies closer to home. However, it’s essential to acknowledge that technology alone is insufficient. These endeavours require financial support within a society that operates on monetary transactions. The current governmental landscape lacks the means to entirely govern monetary utilization and this holds true on both the domestic and international fronts,” he said.

Wickremesinghe also noted that in the present competitive economic climate, financial systems operate without heeding national boundaries, and highlighted the need for Sri Lanka to adapt within these constraints, whether favourable or not.

Explaining that the global economy draws its sustenance from various sources, including banks and stock markets, he said money serves as the driving force and that ultimately, it was essential to acknowledge the pivotal role of money. He also highlighted the fact that similar to the private sector, the government also engages with the money market and issues Treasury Bonds.

Wickremesinghe told the student the objective of the school Capital Market Club program was to acquaint students with this methodology, marking the initial step in this educational journey.

Stating that he wishes to start discussions on the Central Bank report in schools starting from 2024, Wickremesinghe explained that he was actively engaging with the Ministry of Finance in this endeavour. “To facilitate this, we are equipping both teachers and student leaders with training, while also garnering support from bank officials,” he added.

He said initiative underscores the need for familiarity with contemporary methods and that the focus extends beyond the mere dissemination of knowledge; it encompasses financial literacy and securities education that should reach even the most remote villages. “Talented individuals reside within these communities and it is incumbent upon us to provide them with the essential training,” he said..

Wickremesinghe also emphasized that Sri Lanka must recognize that today’s world operates as a single market and that to align with this reality, the government was in the process of signing multiple free trade agreements.

“Deliberations are ongoing with nations such as Singapore, India, Bangladesh, Thailand, Indonesia, China, Malaysia and Vietnam. Anticipated expansions into new markets encompass East Asia, South East Asia, Australia, New Zealand and Japan. Additionally, conversations are underway with the European Union to explore potential facilities. In a fortnight, a delegation from the United States will be visiting our nation for discussions. Hence, a comprehensive awareness of the global market and these agreements becomes paramount.

“The emerging economy we are shaping is both environmentally conscious and digitally driven. Within the framework of this green and digital economy, securities hold their place. This paradigm shift introduces novel approaches. Complementing this transition, our focus extends to an offshore economy. Discussions involving specialized bar associations in London are shaping the corresponding legal landscape. A critical decision lies before us: whether to embrace these pioneering economic systems or remain in stagnation,” he elaborated.

Noting that a significant majority of Sri Lanka’s population will fall within the 25-35 age bracket in a decade or so, Wickremesinghe said the imperative to chart one’s future looms large.

“We’ve selected 100 schools for participation, with intentions to expand this number subsequently. I urge the stock market and the Securities Exchange Commission to actively collaborate and extend their involvement. I request their engagement in overseeing one or two of these associations, providing their valuable support.

“A seed fund of 10 million rupees has been allocated for the program’s initiation. Accordingly, each school will receive Rs. 100,000. I beseech that we confine this financial aspect to this amount. After a year has elapsed, we will evaluate the successful implementation of this program by each school,” he said.

The winning school, along with its subject teacher and 10 students, will be rewarded with a trip to Singapore to study the workings of its stock market for a brief period, Wickremesinghe said, noting the need to limit the monetary allocation to 100,000 rupees per school.

“This rule applies uniformly, irrespective of whether the school is located in an underprivileged or affluent area. Additionally, we aspire to extend opportunities to the second and third-place contenders. This endeavour aligns with our mission to bring the new economy to the grassroots level.

“With this challenge, I entrust you as part of the grand vision to transform our country into a developed nation by 2048,” he said.

-economynext.com/ENCL