Ceylon Chamber of Commerce Chairman Vish Govindasamy has in writing expressed dismay over the closure of the Colombo stock market urging it to be re-opened in the spirit of being investor-friendly.

In a letter to the Securities and Exchange Commission (SEC) Chairman Viraj Dayaratne PC and copy to CSE Chairman Dumith Fernando, Govindasamy said the Ceylon Chamber was dismayed to hear of the former’s decision to direct the CSE to temporarily close the stock market for a period of five business days commencing from 18 April.

Govindasamy said as pointed out by the Chamber when the market was closed during the early days of the COVID -19 pandemic, the sudden closure of the market creates many challenges to local and foreign investors. He listed the challenges as follows

One group of investors (potential sellers) is prevented from exiting the market at the time and price of their choice

Another group of investors (potential buyers) is prevented from acquiring shares at the time and price of their choice

All investors will be unable to carry out valuations and mark to market their respective investment portfolios 

“Since there are circuit breakers in place to arrest a sharp movement in market indices, we believe that there is absolutely no need to close the market in this manner sending out a wrong signal to all investors across the globe. This action will be seen by market participants as akin to the unsuccessful attempt made to hold the exchange rate constant against market forces,” Ceylon Chamber Chairman said. 

“Therefore, we earnestly request you to reconsider this move and direct the CSE to operate freely even amid challenging market conditions safeguarding its reputation as an investor-friendly stock market,” he added. 

SEC closes  Colombo stock market for a week