Despite a fair track record of privatisations or restructuring of State-Owned Enterprises (SOEs) via the Colombo stock market in the past, new President Ranil Wickremesinghe on Friday ruffled many feathers by questioning the CSE’s neutrality and beneficiaries. 

Speaking at the Advocata Forum on reforms, the President, having acknowledged that there is a lot that can be done in restructuring the State enterprises, questioned where it should be done and what is the best platform. 

“Many of you say, send it to the Stock Exchange. I have my questions about it. The Stock Exchange is today not identified with the London Stock Exchange. There are many questions about the Stock Exchange. That a few people control it, and a few people rig it. Now can I put any State enterprise shares onto that to help a few people?” the President told the inauguration of the Advocata Forum. 

In the audience were at least two former CSE Chairmen Ajit Gunewardene and Krishan Balendra and former member of CSE Board Murtaza Jafferjee who is also the Chairman of Advocata. 

“Either you all must change, or we put up a new institution. I don’t want any more arguments on that. If you have to use the present Stock Exchange, we must all be satisfied that it is neutral and benefits all,” insisted President Wickremesinghe. 

He stressed on the latter saying Sri Lanka must be a country in which all people must benefit because “all are suffering especially the lower end is going to suffer the most. They must know that their suffering has not been in vain. That it has worked for the benefit of all”.

During his keynote, Wickremesinghe also hinted at a possible wealth tax. “We need a social market economy today. Just as much as we make money and bigger profits, there must be more money available to people,” the President said. 

“The gap between the haves and have nots is increasing. It has not decreased in the last 10-15 years. The disadvantage groups being pushed back, and this is one of the reasons for the Aragalaya. How do we restore it and ensure we reduce the gap of haves and have nots? We have to resort to higher taxation on wealth, first for economic recovery and social stability to work,” the President reiterated. 

President calls for new economic model