Securities & Exchange Commission (SEC) Chairman Dr. Nalaka Godahewa speaking at a seminar on Tuesday said that they plan to address such issues within the next 2-3 years under a 10 point action plan.
He also said that in India, the market capitalization of its bourse was equivalent to 90% of GDP while in that of Singapore it was 70% of GDP.
He further said that only 282 companies were listed in the Colombo bourse, constituting a mere 1% of the total number of companies registered in the island.
Another drawback in the development of the capital market was that there were under 50,000 active CDS accounts, equivalent to less than 1% of Sri Lanka’s population.
Godahewa also said that certain SEC amendments would be in place before the year end pertaining to investor protection. He also said that the current ills facing the bourse were due to the media.
Godahewa however told this reporter that he expects the bourse to be on the recovery path next year.
He also said that most of the non compliant issues in relation to the bourse were in regard to third party transactions.*
The occasion was a seminar on “Related Party Transactions” organized by the SEC.
*However a handout released on this occasion quoting Godahewa had said: “.. According to the observations of our financial reporting surveillance team, most of the non-compliance issues with Sri Lanka Accounting Standards for the last two to three years have been linked to related party transactions…”