President's stricture on Stock Exchange sends ripples

Some of the leading businessmen in town gathered at the BMICH on Friday to take part in a conference titled # ReformNow, organised by Advocata, a Colombo- based think tank that advocates for free markets. They did not expect an ultimatum would come from none other than President Ranil Wi ck re m e s i n g h e who delivered the keynote address.

In his speech, President Wickremesinghe detailed some of the dif f i c u l t challenges the country is facing and his government as well and the impact on the social fabric of the nation as a whole.

The focus shifted toward loss- making State- owned Enterprises ( SoEs) and how he plans to restructure them. “Our state-owned enterprises need to be restructured in order to become competitive institutions. What is the platform for such restructuring? Many of you say send it to the Stock Market. I have my questions about it. The Stock Exchange is like the London Stock Exchange. There are many questions about the Stock Exchange - that few people control and rig it. Now, can I put state enterprise shares on it to help a few people? I think you all must change, or we will put up a new institution. I don’ t want any more arguments on that,” the President declared.

Some of those influential investors who were in the audience were stunned to hear the President threatening to shut down Colombo Stock Exchange if they don’t stop their wheeler deals, and inside trading. No wonder the Stock Exchange has been often referred to as "The Laundry".

President went further and justified his move: “If you are to use the present Stock Exchange, we must be satisfied that it is neutral and will benefit everyone because all the people in the country should benefit from it. All the people are suffering, especially the lower end is going to suffer the most. They must know that their suffering has not been in vain, and it has worked for the benefit of all. There has to be change, a rise in income, workers have to be looked after and education facilities should be made available. There is no way to go back to the old system, but to a new system with the young ones”.