CSE wants listed firms to disclose COVID-19 impact

Sri Lanka’s listed firms are now required to disclose the impact of the COVID-19 pandemic on the business/operations as well as the response to the impact and anticipated impact on the future operations and financial condition, to the Colombo Stock Exchange (CSE).

The CSE yesterday issued a circular signed by its Chief Regulatory Officer Renuke Wijayawardhane to all listed firms and their company secretaries and registrars with the new requirements. 

The CSE stressed that the listed firms must make these disclosures as a matter of priority.

It noted that the COVID-19 pandemic is impacting the business activities of the listed companies in a substantial manner, although its future effects on the respective firms remain uncertain.

Despite the difficulties in assessing or predicting the exact broad effects of COVID-19 on industries or individual companies, the CSE pointed out that the effects COVID-19 has on the listed companies and how they have so far responded to the impact of the pandemic are material for the investors in making investment decisions.

“You would appreciate that the shareholders 
and investors are closely monitoring the effects of the COVID-19 pandemic on the business performance/operations of the listed companies and expect the companies to provide meaningful and accurate information in a proactive manner,” the circular stated.