CSE requests listed firms to disclose COVID-19 impact

Tuesday, 21 April 2020 01:54 -     - {{hitsCtrl.values.hits}}

The Colombo Stock Exchange (CSE) has requested all listed companies to disclose their respective impact from the novel coronavirus (COVID-19) pandemic.

CSE said the COVID-19 pandemic is impacting the business activities of the Listed Companies in a substantial manner. Whilst many Listed Companies have recognised it as a significant risk in their business operations, its future effects on the respective companies remain uncertain.

The CSE said it acknowledges that it may be difficult to assess or predict with precision the broad effects of COVID-19 on industries or individual companies. Further, the CSE also recognises that the actual impact would largely depend on several factors beyond a company’s control and knowledge.

CSE noted that it has always considered that timely, robust, and accurate information provided by the Listed Companies is of paramount importance to the investing public for the sustenance of a fair and orderly market. In this context, the CSE said it is of the view that the effects COVID-19 has on the Listed Companies and how the company has responded to the impact of the pandemic is material for the investors in making investment decisions.

It reiterated that that the shareholders and investors are closely monitoring the effects of the COVID-19 pandemic on the business performance/operations of the Listed Companies and expect the companies to provide meaningful and accurate information in a proactive manner.

In this context, although the pandemic is still continuing, and it is difficult to forecast the outlook, CSE expects that the Listed Companies give due consideration in making a timely disclosure to the investing public in this regard.

Taking these factors into consideration, the CSE has requested the Listed Companies to make a disclosure to the market, as a matter of priority, setting out the following:

The impact of COVID-19 pandemic on the business/operations of the Listed Company

The Listed Company’s response to the impact of the COVID-19 pandemic

The Listed Company’s expectation of the future impact of COVID-19 on the company’s future operations and the financial condition