• Over 250 participants attend SEC-CSE event; more planned in the future in tandem with emerging investment opportunities

There has been a big draw for the Securities and Exchange Commission of Sri Lanka (SEC) in collaboration with the Colombo Stock Exchange (CSE) organised Investor Forum in Jaffna last week at the Tilko City Hotel. Aimed at educating the general public on the investment opportunities available in the capital market, the forum saw over 250 participants including eminent professionals, academics and the business community the SEC said yesterday. SEC Chairman Dr. Nalaka Godahewa and SEC Officer-in-Charge /Deputy Director General Dhammika Perera were the key speakers at the event. Comtrust Asset Management Director/CEO P. Asokan and CT CLSA Securities Executive Director Gordon Nadesan addressed the gathering on the technical aspects of investing. Dr. Godahewa in his opening remarks highlighted the dual role of the stock market in boosting the economy in the north. Whilst commending the excellent infrastructure development spearheaded by the Government, he pointed out that the next phase of development would be to expand industries, generate employment and improve livelihoods of the people. Accordingly, he identified the stock market as an alternative financial tool to raise capital for business activities in the North. He also explained that the capital market could transform savings to investment and thereby improve livelihoods. He highlighted the performance of the CSE during the post-war era and emphasised the impressive growth of nearly 300% witnessed in the market during the last five years and the market growth of 27% during the current year. According to Dr. Godahewa, the low interest rate regime will not only boost the performance of companies but also stimulate the stock market, with more investors preferring to invest in the market. Therefore he urged investors in the Northern Province to take advantage of this scenario and derive the benefits of capital market investments. It is important to note that this was the first instance where a Chairman of the SEC addressed investors in the north, which was greatly appreciated by the audience. Perera addressed the gathering on the regulator’s role in promoting, developing and maintaining a fair, efficient, orderly and transparent capital market. He emphasised on the functions and powers of the SEC and the role it plays in achieving the aforementioned objectives. Perera clearly stipulated that the SEC has taken adequate measures to safeguard the interest of the investors and that undue fear towards the market is inappropriate. Nadesan addressed the forum on the dynamics of a stock market while giving prominence to the impressive growth rates of the CSE, while Asokan spoke of the unit trust industry as an alternative mode of investment especially for less sophisticated investors. Both presenters explained the level of risks involved in investing in the capital market. However it was suggested that the risk levels could be managed if investors make informed, vigilant and rational investment decisions. The panel discussion comprising Dr. Godahewa, Perera, Asokan and Nadesan paved the way towards constructive dialogue between investors, the industry and the regulator. Queries pertaining to investment opportunities, market performance, and development initiatives undertaken by market stakeholders were discussed. The session increased the visibility of the market as an alternative mode of investment in the peninsula. Encouraged by the overwhelming investor interest which was witnessed at the forum, the SEC along with the CSE is expected to organise similar programs in the Northern Province in the near future.