The Securities and Exchange Commission of Sri Lanka (“SEC”) is the capital market regulator in Sri  Lanka. At present the country enjoys a vibrant market for equity and debt trading. With the enactment of the Securities and Exchange Commission Act No.19 of 2021, the SEC is empowered to license and regulate a derivatives exchange for futures and options trade. 


Sri Lanka is strategically located as a trading hub for both physical and futures trade. The strategic position of the country provides ideal opportunities for the off-shore, near-shore, and on-shore trade of multi-asset classes within the regulatory framework. The Colombo Port City offers lucrative incentives and scope for international entities who are in the trading space of derivatives to Sri Lanka with global trading asset classes wherein on-shore business clusters namely, tea, latex rubber, coconut-based products, spices, minerals, and gems-precious stones will facilitate the options trading of derivatives.