Sri Lanka's top business group opposes the closing of the stock market

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Ceylon Chamber of Commerce, one of the largest business chambers in Sri Lanka, has reportedly opposed the Securities and Exchange Commission (SEC) decision regarding closing the stock market for five working days.

The Chamber recently stated that by closing down the stock market, potential sellers will be prohibited from exiting when the market offers the stocks of their choice, while potential buyers will be barred from acquiring shares.

Vish Govindasamy, Chairman of the Chamber, said that shutting down the stock market for five days will make investors unable to check out valuations and spot to market their particular investment portfolios.

He further said there are breakers set to arrest sharp movement in the market indices. The Chamber has hope that there is no requirement for closing the market and sending out a wrong message to all the investors around the globe.

He added that the Chamber has requested to rethink this move and allow the Colombo Stock Exchange to function smoothly and secure its reputation as an investor-friendly stock market.

For the record, it was announced by the SEC that they have decided to rule the Colombo Stock Exchange to shut its operations in the stock market temporarily for five business days starting from the 18th of April.

According to SEC, this move would benefit both investors and other market participants if they are offered an opportunity to have much more clarity and understanding of the economic conditions at present to aid them in making well-informed investment decisions.

Furthermore, the Colombo stock exchange has been impacted adversely due to the economic anguishes in the South Asian country, and the index has collapsed 26% by the end of March compared to the end of 2021.

Source Credit - https://www.business-standard.com/article/international/sri-lanka-s-largest-business-group-opposes-decision-to-close-stock-market-122041800033_1.html