Hit by the worst-ever economic crisis, the cash-strapped nation Sri Lanka has decided to keep Colombo Stock Exchange (CSE) temporarily closed for five days, starting from April, 18.
The Securities and Exchange Commission of Sri Lanka announced on Saturday, it is “of the view that it would be in the best interests of investors as well as other market participants if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions.”
“Therefore, acting in terms of the provisions contained in Section 30 of the Securities and Exchange Commission Act No. 19 of 2021, the SEC has decided to direct the CSE to temporarily close the stock market for a period of five business days commencing from 18th April, 2022,” the statement read.
SEC also opined that it evaluated the impact the ongoing economic situation could have on the stock market, especially in conducting an orderly and fair market for trading in securities.
It informed that several stakeholders in the securities market, including the Colombo Stock Brokers Association, have been asking for a temporary closure of the market due to the ongoing economic crisis in the country.
The economy of Sri Lanka has been in a freefall since the onset of the COVID-19 pandemic. Its tourism sector has collapsed with other sectors including agriculture surviving on the ventilator. In a move to make the country’s agriculture fully organic, the Sri Lankan government banned all chemical fertilizers, which have harmed the farmers.
Sri Lanka has almost exhausted foreign exchange, which has made it incapacitated to import food and fuel, even pay back its foreign debts.