Business

Temporary closure of share trading based on pragmatic considerations – CSE

Published

4 years ago

2022/04/19

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

Birthday gift turned lifeline: US-based young environmentalist steps up for Sri Lanka

Published

3 hours ago

2025/12/16

Sahan Weerasooriya

Birthday becomes an act of compassion; Daham and Consul General Charith Yattegoda (R)

For Daham Perera, a December birthday celebration this year became something far more meaningful than cake, candles or gatherings with friends. Instead, it turned into a deeply personal act of solidarity with a country he calls his motherland.

Perera, a young environmental enthusiast based in Los Angeles, says his bond with Sri Lanka remains unbroken despite living thousands of miles away. “Although I live in America, my parents and all my relatives live in beautiful Sri Lanka. That connection is something I carry with me every day, he said.

Having visited Sri Lanka in August, Perera spent weeks traveling across the island, reconnecting with relatives and visiting historical and environmentally significant sites. “I saw the true beauty of Sri Lanka – its people, its biodiversity, and its rich heritage. Those memories are among the most beautiful in my life, he recalled.

That joy, however, was short-lived. Soon after his return, the devastating Ditwah cyclone struck the island, leaving a trail of destruction. Homes were damaged, livelihoods disrupted and families displaced. “When I saw images of my friends losing their homes, books soaked in mud, clothes ruined by floodwaters, I felt a pain I cannot put into words, Perera said.

As an environmentalist, the damage to Sri Lanka’s fragile ecosystems troubled him deeply. “Sri Lanka’s biodiversity is priceless. When disasters like this strike, it is not just people who suffer, but forests, wildlife and entire ecosystems that take years to recover, he noted.

With his birthday falling on December 9, Perera made an unconventional decision. “Normally, my father and I celebrate our birthdays by going to the temple and spending time with friends. But this year, celebrating didn’t feel right when my people were suffering, he explained. “I kept asking myself—what can I do, even from afar?”

The answer was simple but powerful. Perera chose to donate all the money he had saved for his birthday celebrations, along with additional contributions from his family, towards relief efforts in Sri Lanka. “Economic support at times like this is critical. Even a small contribution can help a family rebuild, restart a livelihood, or regain dignity, he said.

The donation was formally handed over to Sri Lanka’s Consul General in Los Angeles, Charith Yattegoda, at the Consulate premises. For Perera, the gesture carried deep emotional significance. “If I can replace my personal happiness with smiles on the faces of people back home, that is the most beautiful birthday I could ever celebrate, he reflected.

He describes the letter of appreciation he received in return as his most treasured gift. “That thank-you letter is not just paper. It is a reminder that loving your country means standing by it in its darkest moments. It will always remain one of the most meaningful keepsakes of my life, Perera said.

Perera hopes his story will inspire other young Sri Lankans living overseas to stay connected and give back. “Distance should never weaken our responsibility. Supporting Sri Lanka—its people, its economy, and its environment—is something we can all do, no matter where we live, he added.

In turning a birthday into an act of compassion, Daham Perera has offered a quiet but powerful reminder: sometimes, the greatest gifts are the ones we give away.

By Ifham Nizam

Business

John Keells Foundation partners Sri Lanka Police in combatting violence against women and children

Published

3 hours ago

2025/12/16

Sahan Weerasooriya

As part of its ongoing commitment to combat violence against women and children towards empowering a healthy and progressive nation, John Keells Foundation (JKF) continues to empower law enforcement agencies through Project WAVE (Working Against Violence through Education) – its flagship of over ten years – to combat gender-based violence and child abuse.

These activities include a strategic collaboration through which JKF supported the Sri Lanka Police to enhance their response to crimes involving women and children through the sponsorship of a global cutting-edge investigative software for use in the Cyber Investigation Unit (CIU) at the Bureau for the Prevention and Investigation of Abuse of Children and Women (BPIACW). The software enables officers to analyse and connect data efficiently, strengthening their ability to investigate and prevent online exploitation and related offences. BPIACW reported that the new platform had directly contributed to a significant and measurable improvement in their investigative capacity, recording the rescue of 22 children, the arrest of 21 suspects, and the filing of 111 cases in courts within the first year of its deployment.

Speaking on the partnership with JKF, Deputy Inspector General of Police – Ratnapura, and Former DIG – Children & Women Abuse Prevention 8 Investigation Range, Renuka Jayasundara said, “We extend our sincere gratitude to JKF for your steadfast partnership and for serving as a cornerstone of our efforts to strengthen child protection services through Project WAVE. Your contribution is making a tangible and quantifiable difference as evidenced by the growing numbers of successful investigations and legal referrals.”

Beyond technological support, JKF has also conducted a series of Train-the-Trainer (ToT) programmes, to improve the ability of officers to respond to GBV and CP in a sensitive and effective manner. The sixth such ToT was conducted from 24th to 26th of September 2025 for the benefit of nominated officers of the Homagama, Kaduwela and Maharagama police divisions. To date, 162 officers across 60 police stations have been impacted.

Business

SLANZBC appreciative of help from Australia and New Zealand

Published

4 hours ago

2025/12/16

Sahan Weerasooriya

Chandana Amaradasa; ‘appreciative of assistance’

The Sri Lanka Australia–New Zealand Business Council (SLANZBC) has extended its profound gratitude to both the Australian and New Zealand governments for the generous and timely assistance provided to Sri Lanka during the recent flood devastation.

Chandana Amaradasa, SLANZBC president, noted that both governments donated one million dollars each, in their respective currencies, at a critical moment for Sri Lanka — support that will play a significant role in helping communities rebuild their livelihoods.

The government of New Zealand has pledged NZ$1 million to support humanitarian relief efforts in Sri Lanka following Cyclone Ditwah.

This assistance will be channeled through an international

humanitarian partner to strengthen ongoing rescue and relief operations.

Similarly, the Australian government announced on November 30, 2025 that it will provide AUD 1 million in humanitarian aid to bolster Sri Lanka’s response to Cyclone Ditwah.

These compassionate and timely gestures, Amaradasa said, once again demonstrate the unwavering commitment of both countries to stand beside the Sri Lankan people in times of crisis. He also recalled that

Australia and New Zealand have consistently supported Sri Lanka, stepping forward during previous national emergencies as well.

Today’s humanitarian assistance further reaffirms the depth of these longstanding relationships and the true spirit of friendship that binds the nations — a bond built on mutual respect, shared values and enduring goodwill.

“Our association deeply appreciates this kind and meaningful support and remains committed to fostering even closer ties between the people of Sri Lanka, New Zealand, and Australia, he added.

By Hiran H Senewiratne