PM for a strong stock market but wants key issues addressed

Prime Minister Ranil Wickremesinghe yesterday said the unity Government is committed to an efficient, transparent and strong stock market that reflects the strong economy being created in the country.

“As far as stock market is concerned we require an efficient and transparent stock market,” he told the ceremony to mark the 30th anniversary of the Colombo Stock Exchange.

He said to expand the market capitalisation certain public sector entities would be listed in 2016. This will help rebalance the impact from possible foreign outflows due to hike in US interest rate shortly.

However, the Prime Minister said the capital market must address a few issues. 

“I want to see an expansion in shareholdings in the country. The middle class must have a stake. I am not satisfied with the status quo. In the past five to six years the stock exchange in fact led to a concentration of share ownership,” he said.

“There are also questions of integrity which we can’t run away from and which we have to address. We have a SEC Chairman in Tilak Karunanartane, whom I would describe in two words is ‘born again,’” the Prime Minister said. 

Wickremesinghe said it was up to the capital market industry to address the concerns raised in an open letter by Chandra Jayaratne in October this year on the conflict of interest in securities market. “These were issues discussed during the elections and the Parliament will go into when oversight committees are established in January,” the Premier added.

“I want the stock exchange to grow and become the centre for South Asia. We will bring in laws which the region hasn’t seen, including the Exchange Management Act and territorial taxation and other bold measures. We also need complete confidence in stock exchange,” Prime Minister added.

During his speech, Wickremesinghe also recalled that setting up of CSE in 1985 was an important measure in establishing a market economy by President J.R. Jayawardena. Wickremesinghe expressed regret over the inability of the then Finance Minister Ronnie de Mel, who played a key role, to be present at the CSE’s 30th anniversary celebrations. 

Wickremesinghe also made it a point to say that he was the last member of that J.R. Jayawardena Cabinet to be in politics.