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Temporary closure of share trading based on pragmatic considerations – CSE

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4 years ago

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The Colombo Stock Exchange board members explain the reasons that led to their decision to temporarily halt trading activities of CSE, in Colombo yesterday. From left: CEO Rajeeva Bandaranayake, Chairman Dumith Fernando and Director Dilshan Wirasekera

By Sanath Nanayakkara and Hiran Senewiratne

Colombo Stock Exchange (CSE) said yesterday that it recommended the Securities and Exchange Commission (SEC) to temporarily close trading activities of the CSE based on ‘uncertain’ information, yet with a most pragmatic view of the unprecedented crisis situation in the country, with its statutory obligations and overall investor protection at heart.

CSE Chairman Dumith Fernando, CEO Rajeeva Bandaranayake and Director Dilshan Wirasekera made these comments at a press briefing held to explain their decision to halt the business of CSE for five days from April 18 to April April 22.

CSE Chairman Dumith Fernando said,” We accept that there is no answer that is 100% or 100% wrong. There are parties and individuals some supporting the decision and some others opposing it. This was a difficult decision. We have multiple stakeholders. It is the responsibility of the CSE to give the general public the key factors that led to this decision.”

He further said:

“CSE needs to be consistent with the duties and responsibilities placed on the Board by the new SEC Act. In this context, we are obligated to ensure the long term sustainability the stock market. So we have to look at the evolving events and act to ensure the long term sustainability of the stock market. And then we need to understand the public interest, particularly in relation to investors. SEC Act stipulates a very clear responsibility to CSE to give particular attention to public interest in terms of investor protection.”

“We used the information available to us to make this decision which is in large part was uncertain information. So it was a tough call, but it being our responsibility, we had to meet with that tough call.”

“We have three primary stakeholders – this is not to ignore other stakeholders – one is the intermediaries, then you have listed companies, the core of the CSE. Thirdly you have investors. There is a broad range within investors; foreign investors, institutional investors, high net-worth investors and retail investors. The Stock Exchange has to look at things in totality and make decisions to protect overall interests of all of these investors. Given the responsibility in accordance with the new SEC Act, this decision heavily leaned on investor protection. In the old SEC Act, there was very little described in terms of responsibilities of the Stock Exchange which dealt with who can apply to CSE, granting of licences, establishing rules of the Exchange, but there weren’t any expressive provisions on the duties of CSE. The new SEC Act is quite clear. According to Section 24 of part two, we need to maintain a fair, orderly, transparent and efficient securities market in Sri Lanka. Two; we need to enhance effective and efficient functioning of the securities market, and thirdly we need to mitigate systemic risks. Those are the objectives of a market institution. Section 27 speaks most specifically about our duties and responsibilities as a stock exchange. It says that it shall be the duty of an Exchange to ensure an orderly and fair market in securities. It further says that the Exchange shall act in the public interest. Having particular regard for the protection of investors should supersede any other requirements. Section 30 stipulates that SEC under consultation with the Exchange can decide to close the market in certain circumstances including natural disasters, or in an economic or financial crises or other similar circumstances within or outside Sri Lanka.”

“There is a statutory obligation for us to look after the public interest especially with regard to investor protection. One of our key responsibilities is to ensure fair, efficient and orderly market. A fair market is one that includes the market that reflects the forces of supply and demand of shares. Not artificial supply and demand. So one factor that we looked at was achieving a natural demand and supply of shares driven by fundamentals. One of the issues that led to the fall of the market in the last month was ‘forced selling’ by margin providers and stockbrokers whose clients have taken shares on credit. Margin providers and stockbrokers force sell when portfolio values of clients go to certain levels which is in fact within the rules. Now the question is whether it’s a fair market. When there is a systemic drive to force sell, actually the selling side outweighs the fundamental interest in those stocks creating an imbalance. Such artificial pressure was one factor we took into consideration. Secondly, to create an efficient market, there has to be efficient information. The news that came out on preemptive foreign debt was followed by an extended holiday. We don’t believe that investors, investment advisors had enough time to digest and understand what the impact of that announcement would be. Without that transparency of information, it is very difficult for investor to have the transparency of efficient information to operate an efficient market.

‘Another factor of a fair market is that a market should remain liquid which means that it is kept open. Our natural instinct is that market should remain open. We don’t believe that the market should remain indiscriminately closed. The market should remain open and provide liquidity- that is the fundamental pledge we have made to our stakeholders. But when you want to provide a fair and orderly market, now there are factors in conflict with each other. To keep the market open, we might undermine some of the other factors that create an orderly market. So this decision was not about one set of pros and one set of cons. So, this decision was made on the fact that we have these duties and responsibilities under the new SEC Act. Disposing of these duties can be an offence under the Act. We had to make this decision based on the unprecedented crisis situation prevailing in the country in order to cool it off and then be able to make more informed decisions and resume fair, transparent trade activites soon.”


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Business

Commercial Bank scales up ADB credit line to empower Jaffna SMEs

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16 mins ago

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2026/09/28

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Empowering Regional Enterprise: ADB Country Director Shannon Cowlin (right), T. Thivaharan, Manager of Commercial Bank’s Manipay Branch (center), and P. Prabakaran, Proprietor of New V.S.P. Gingelly Oil (left),at the production facility in Sandilipay, Jaffna (415 km north of Colombo). The visit highlighted how targeted ADB-backed financing helps local small and medium-sized enterprises overcome financing barriers, upgrade operations, and stimulate employment across regional supply chains.

By Sanath Nanayakkare

Continuing its mission to drive inclusive economic recovery and empower Sri Lanka’s grassroots business sector, the Commercial Bank of Ceylon PLC has actively accelerated the disbursement of the Asian Development Bank’s (ADB) Enhancing Small and Medium-Sized Enterprises Finance Project line of credit.

As Sri Lanka’s premier private sector lender, Commercial Bank drives regional development by bridging financial gaps outside the Western Province. Jaffna and the broader Northern Province remain pivotal focus areas due to their immense potential for industrial regeneration, vibrant agricultural output, and entrepreneurial resilience in the post-crisis economic landscape.

Directing targeted, affordable financing enables local enterprises to overcome historical financing barriers, expand production capacity, and stimulate employment across regional supply chains.

Quality at the Source: ADB Country Director Shannon Cowlin inspects a bottle of premium sesame oil at the New V.S.P. Gingelly Oil factory floor in Jaffna. Working capital facilities extended through Commercial Bank under the ADB line of credit enable manufacturers like Harish Industries to meet growing wholesale and retail demand across Sri Lanka while securing long-term economic resilience.

The dedicated credit scheme offers affordable interest rates to help small and medium-sized enterprises (SMEs) rebound from recent macroeconomic shocks, maintain employment stability, and build long-term sustainability. Designed to target underserved segments, the funding line prioritizes viable enterprises located outside the Colombo district, women-owned and women-led businesses, and ventures incorporating strong climate finance components. Eligible sectors span manufacturing, agriculture, animal husbandry, technology, tourism, and direct export industries.

A standout beneficiary showcasing the transformative impact of this regional focus is Harish Industries, a flourishing manufacturing firm located within the purview of Commercial Bank’s Manipay branch in Jaffna. Owned and operated by proprietor Ponnuchamy Prabakaran, Harish Industries manufactures premium sesame oil under the popular brand name “New VSP Gingelly Oil”.

The working capital facility extended by the line of credit to Harish Industries helped to cater to short-term liquidity needs, ease out cash flow pressure, and operate the business in a sustainable manner.

Additionally, this financial backing helped create more employment opportunities, strengthen its supply chain, and expand business operations to meet growing wholesale and retail demand across Sri Lanka.

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A tech-savvy new generation stepping in to reinvent Sri Lankan hospitality

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28 mins ago

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2026/09/28

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When the final twelve champions took the stage for their honours, the event shifted from a mere ceremony into a profound symbol of tomorrow

The grand halls of the Taj Samudra in Colombo buzzed with a distinct energy on the morning of September 25, 2026, as leaders gathered for the National Celebration of World Tourism Day.

Yet, beneath the formal discussions on digital agendas and artificial intelligence, a deeper, more vibrant narrative was quietly unfolding. This was not merely a story of algorithms and automated efficiency; it was a human story – a tale of Sri Lanka’s youth stepping forward to redesign the future of hospitality.

For generations, Sri Lanka’s allure has been rooted in its timeless landscapes, golden shores, and the legendary warmth of its people. But as global travel evolves, a new generation of tech-savvy local innovators is finding ways to weave cutting-edge technology into the rich tapestry of Sri Lankan culture. This shift took center stage during the Tourism Start-Up Competition 2026, held under the theme “AI-Driven Innovation for the Future of Tourism”.

Out of 52 competitive applications spanning tertiary and commercial levels, young minds proved that technology and tradition can go hand in hand.

The twenty-five shortlisted teams stood before expert panels to defend visions that bridge the gap between ancient heritage and modern data intelligence.

Behind every submitted AI solution was a young entrepreneur eager to protect local destinations, enhance visitor experiences, and elevate service delivery.

When the twelve winners were finally honoured, the celebration transformed into something much greater than an awards ceremony.

It served as a powerful reminder that the true engine of Sri Lanka’s digital transformation is its youth. Armed with code, creativity, and a profound love for their country, these young visionaries are ensuring that when travelers explore Sri Lanka, they do not just witness the future – they feel the heartbeat of a new, digitally empowered era of hospitality.

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IRD enforces mandatory TIN certificate submission for specified transactions starting November 01

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29 mins ago

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2026/09/28

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The Inland Revenue Department (IRD) has announced a sweeping regulatory shift, confirming that the submission of a valid Taxpayer Identification Number (TIN) Certificate will become mandatory for a wide range of essential financial, commercial, and property transactions starting November 1, 2026.

The decisive directive, enforced under the legal framework of the Inland Revenue (Amendment) Act, No. 11 of 2026, applies directly to individuals specified under Section 102(3) of the principal Inland Revenue Act.

Under the new mandate, relevant authorities and corporate entities across the island have been instructed to withhold processing or completion of key procedures unless applicants present a verified TIN document. The specified transactions include:

Financial Services: Opening any account at a bank or financial institution, and obtaining a credit card.

Property and Construction: Obtaining approval for building plans, and registering land or titles to land.

Automotive Administration: Registering a motor vehicle or renewing a motor vehicle license.

Commercial Activity: Registering a new business.

Corporate Transfers: Transferring shares of a company incorporated in Sri Lanka—a requirement binding on both the transferor and the transferee.

The IRD has reiterated that acquiring a TIN remains a statutory obligation for all resident individuals who were aged 18 or older as of December 31, 2023, as well as those who attain the age of 18 on or after January 1, 2024, upon reaching that milestone. Officials handling the designated services have been sternly directed to verify compliance before moving forward with any customer requests.

To streamline the transition and prevent administrative bottlenecks, the department has encouraged members of the public who have not yet secured their numbers to register promptly via the official IRD e-Services platform. Furthermore, recognizing potential logistical hurdles, the IRD noted that a printout of the online TIN verification result—clearly displaying the applicant’s National Identity Card (NIC) number and TIN—will be accepted as a valid alternative to the official certificate.

As the November 1 deadline approaches, citizens are urged to secure their documentation beforehand to ensure uninterrupted access to essential public, financial, and legal services.

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