Courtesy Adaderana

The Security and Exchange Commission (SEC) of Sri Lanka has directed the Colombo Stock Exchange (CSE) to temporarily close the stock market for a period of five business days commencing from the 18th of April.

In a statement, the SEC director, Tushara Jayaratne said the Board of Directors of the CSE, by way of a communiqué dated April 15, had called upon the Commission to temporarily close the stock market citing the present situation in the country.

Many other stakeholders of the securities market including the Colombo Stock Brokers Association had also sought the temporary closure of the market on the same grounds, according to the SEC director.

Accordingly, the SEC has carefully considered the grounds that have been adduced by them and has evaluated the impact the present situation in the country could have on the stock market, in particular the ability to conduct an orderly and fair market for trading in securities.

Mr. Jayaratne said the SEC is of the view that it would be in the best interests of investors as well as other market participants if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions.

Therefore, acting in terms of the provisions contained in Section 30 of the Securities and Exchange Commission Act No. 19 of 2021, the SEC has decided to direct the CSE to temporarily close the stock market for a period of five business days commencing from April 18.