Sri Lanka’s Securities and Exchange Commission (SEC) announced on Saturday that it has decided to order the Colombo Stock Exchange (CSE) to temporarily close the stock market for a period of five working days from April 18.
The SEC said in a press release that the CSE board had requested a temporary stock market shutdown citing the current economic crisis in the country.
Many other securities market participants, including the Colombo Stock Brokers Association, have also requested a temporary market shutdown on the same grounds, the SEC said.
“The SEC has carefully considered the reasons they have given and assessed the impact that the current situation in the country could have on the stock market, in particular the ability to operate an orderly and fair market for trading in securities” , said the SEC said.
The SEC said it would be in the interest of investors as well as other market participants if they had the opportunity to have more clarity and understanding of the economic conditions currently prevailing, so that they can make decisions. informed investment.
The CSE has been affected by the economic difficulties of the South Asian country and the index fell 26% at the end of March compared to the end of 2021.