Colombo Stock Exchange suffers major reversal



By Shyam Ganewatte


The net worth of the Colombo Stock Exchange has decreased by Rs. 284 billion during the past one year, the latest statistics released by the Central Bank reveal.


According to the just released issue of the Recent Economic Developments, the net worth of the Colombo Stock Exchange was Rs. 3,076,000,000 a year ago and it has come down to Rs 2,792,000,000 as at August 30, this year.


The daily turnover of the CSE was Rs. 1,878 million last year but as at August 30, this year the figure has come down by Rs. 864 million to Rs. 1,014 millions, the Central Bank report states.


The CSE index has come down from 9,240 units to 6,551 units and the Standard & Poor’s Sri Lanka 20, a stock market index, based on market capitalisation, which follows the performance of 20 leading publicly traded companies


listed in the CSE too has crashed from 3,969 units last year to 3,585 units this year, according to the report.


 


State Minister of National Policies and Economic Affairs Niroshan Perera, contacted for comment, admitted that there was a decrease in the net worth of the CSE, but he attributed it to the effects of the previous government’s economic policies. "The CSE was highly politicised and infested with malpractices when we took over the government. We are working hard to remedy the situation. Despite all these odds we have been able to maintain a growth rate of 5.5 per cent in 2016. We have commenced mega development projects including the International Financial City. With such initiatives we are sure the CSE would soon catch up. The future of the CSE performance will be better when we launch some more development projects."


 
 
 
 
 
 
 
 
 
 
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