Stockbrokers seek government support to revive bourse

The Colombo Stock Brokers Association (CSBA) has requested the government to immediately intervene to revive the activities at the Colombo Stock Exchange (CSE).

This request was made yesterday when the CSBA officials met with Prime Minister Mahinda Rajapaksa, who is also the Finance, Economy and Policy Development Minister.

The stockbrokers had stressed the need for the return of the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) to the stock market to enhance market activities and also to attract large foreign investors.

Foreigners were net sellers in 2019 with an outflow of Rs.11.72 billion.

The stockbrokers had also highlighted the need for the listing of state-owned enterprises on the CSE to develop the country’s capital market.

The proposed demutualisation of the CSE was another area that was discussed at length. Currently, that process is stuck at the Attorney General’s Department as the brokers and government couldn’t reach an agreement over the ownership structure of the demutualised bourse.

The absence of a chairman and commission members at the Securities Exchange Commission (SEC) for about two months had also surfaced during the meeting.

Prime Minister Rajapaksa had pledged to support the revival of the stock market with an immediate action plan.