Stock market manipulators need to be weeded out :Top company official

Manipulation is so rampant in the Colombo stock market that it is very necessary to weed out the perpetrators, a top company official says. "The Securities and Exchange Commission (SEC) is aware of those who are manipulating the stock market, but so far no one has been taken to task. Unless something is being done to curb this, serious investors won't come to Sri Lanka," Suren Madanayake, Managing Director ACL Cables PLC told the Business Times.

Highlighting the importance in weeding the manipulators, he said that this way confidence will be built in the stock market. Commenting on the ACL share Mr. Madanayake said that it hasn't (fortunately) been in the manipulators' radar. "Our investors are long term and not fly-by night," he added.

He said that ACL Cables, which is celebrating its 50th anniversary this year, is eyeing diversifying into non-related areas. "We're looking at getting into more power-related areas," Mr. Madanayake said, noting that tourism will 'not' be a potential area for them as many have already invested in it.

ACL Cables PLC recorded a turnover of Rs. 5.18 billion in 2010/11 as compared to Rs. 3.49 billion in 2009/10. The company's profits before tax recorded Rs. 33.9 million in 2010/11 after registering a loss of Rs. 146.9 million in the previous year. Meanwhile, ACL Cables Group's profits before tax moved significantly upwards from Rs. 196 million previously to Rs. 449.7 million in the period under review.

Mr. Madanayake said that one of the most favourable developments during the year to have directly contributed to ACL's performance has been the expansion of rural electrification efforts by the Ceylon Electricity Board (CEB). "As one of our main clients, this increase constituted an upsurge in demand for our products, thereby contributing to our improved turnover.

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