There is a lot of value erosion: Former DG of SEC

Tharushan Fernando

The lack of investor confidence has been termed as the core reason for the collapse of the Colombo Stock Exchange.

The Colombo Stock Exchange’s All Share Price Index has indicated a downward trend since the year began before finally moving downwards by 633 points or 9.1 percent. Though it recovered on Thursday and Friday  closing at 0.50 per cent up after four straight days of losses.

Former Director General of SEC, Malik Cader, in regard to the 400 billion rupee value erosion, noted that the issue right now is that there is a lot of value erosion and the ‘unsophisticated’ investors who maybe from outside Colombo are taking a beating and it must be understood if they are in a position to handle this

He added that there was a manipulation of stocks in regard to the stocks that ‘zoomed’ up in value in the recent past, because fundamentally such an increase cannot be expected.