COLOMBO, Apr 18 (NNN-XINHUA) – Sri Lanka’s largest business group, Ceylon Chamber of Commerce, yesterday opposed a decision by the Securities and Exchange Commission (SEC), to close the stock market for five working days.
By shutting down the stock market, potential sellers are prevented from exiting the market, at the time and price of their choice, and potential buyers are prevented from acquiring shares, the chamber said.
“All investors will be unable to carry out valuations and mark to market their respective investment portfolios,” Chairman of the chamber, Vish Govindasamy said, in a letter to SEC Chairman, Viraj Dayaratne.
Govindasamy said, there are circuit breakers in place, to arrest a sharp movement in market indices, and the chamber believes that, there is no need to close the market in this manner, sending out a wrong signal to all investors across the globe.
“Therefore, we earnestly request you to reconsider this move and direct the Colombo Stock Exchange to operate freely, even amid challenging market conditions, safeguarding its reputation as an investor-friendly stock market,” Govindasamy said.
On Saturday, the SEC announced that it had decided to direct the Colombo Stock Exchange to temporarily close the stock market for a period of five business days starting today.
The SEC said, it would be in the best interests of investors, as well as, other market participants, if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions.
The Colombo Stock Exchange has been adversely affected by the economic woes in the country and the index has fallen 26 percent by the end of Mar compared to the end of 2021.– NNN-XINHUA
