The consistent performance of the Colombo Stock Exchange (CSE) which has been recognised worldwide is a reflection of the growth of the economy despite the challenging times, said State Minister of Finance Ajith Nivard Cabraal.
He said the rating by world bodies of the performance of the equity market of Sri Lanka reflects the sentiments of the local and foreign investors who have reposed immense faith in the policies of the government which are aimed at strengthening the macro-economic fundamentals and driving economic growth. “Since taking over the reigns in 2019 President GotabayaRajapaksa and the new Government have been pushing for policy reforms to boost economic growth,” the Minister said, adding that the positive sentiments on the performance of the market has been felt across the country which is an incentive for more local especially SMEs and other institutional investors to come into the market.
However, the Opposition and certain sections allege that there has been pump and dump in the CSE enabling the market to expand artificially in recent weeks and that it is a repetition of the trend that took place from around 2012 to 2014.
“It was dump, dump and dump during the ‘Yahapalana’ regime which led to the crash of the stock market and economy. It was during the former regime that broad daylight robberies took place.
Investors were driven away due to chaotic policies. Such bankrupt elements and so called ‘economic experts’ didn’t do anything other than talking big and taking the people for a ride for five years,” the minister said, adding that now they have woken up to the bitter truth which they find difficult to stomach. He said the Government has stabilised the rupee and the foreign exchange and have created an enabling environment for investors.
The Rupee was at its worst state during the former regime and no investors dared to come . The Rupee depreciated to Rs. 196 against the USD in mid January this year and thereafter showed some stability hovering around 190 in the recent weeks following intervention of the regulator. “People today see action and light at the end of the tunnel and are confident of investing and doing business. We will revive the economy and make it the best in the region soon,” the State Minister said.
The Colombo Stock Exchange has been rated the best performing exchange in the world in recent times and the main index of the Exchange, the All Share Price Index (ASPI) was ranked the second best performing stock index in the world as of January 13, 2021 according to Bloomberg.