The Colombo Stock Exchange (CSE) is reportedly facing an unfavourable situation due to the continued slump. By yesterday (27 March) the All Price Index has weakened 4.07% since the beginning of 2017.

While the brokering companies are faced with several serious issues under these circumstances, Ada Derana Biz learned that some companies are mulling pay cuts from April.

Meanwhile, an urgent meeting over the prevailing crisis situation had been held between the heads of stock broking companies and CSE authorities on 27 March. This meeting had been called for by CSE authorities to discuss steps to be taken to counter the continued slump.

Inquiries by Ada Derana Biz revealed that this meeting had been inconclusive.

During this meeting, brokering companies had explained that by now trading of three brokering companies have been already suspended due to the newly introduced Liquid Capital Requirements on brokering companies and that expecting new investments of funds is pointless within a slumping trend in the CSE.

Furthermore, stock brokers had expresses dissatisfaction over the recently held investment forums in Australia and New Zealand. Several heads of brokering firms had stated that holding investment summits in foreign countries to attract foreign investors while spending huge sums instead of taking proper steps to develop the stock market is meaningless.

Meanwhile, a meeting is to be held very soon between the Finance Minister and stock brokers to discuss the prevailing crisis situation.