Too many Stock Broker firms in the Colombo Stock Exchange – SEC Chief

SEC Chief Thilak Karunaratne

Sri Lanka’s Securities and Exchange Commission’s Chief Thilak Karunaratne believes that the number of Stock Broker firms operating in the Colombo Stock Exchange is too many for a tiny market such as the CSE.

“We have too many stock brokers for this tiny market and I don’t think they are making money, except for a few big ones”, he told News360.lk.

Colombo Stock Exchange has 29 stock broker firms operating under it with one firm only engaged in debt trading.

“I am sympathetic of their present plight that they can’t make money”, Karunaratne further said.

Up until the year 2009, the CSE only had 21 Stock Brokers, but the end of the conflict saw 8 more coming-in.

According to the SEC Chairman, some of the new stock brokering firms who promised to bring in foreign investors, have not brought in them as promised.

Colombo Stock Exchange during the fist five months of this year has seen its All Share Price Index losing 20.45%.

It was among the best performing stock markets during the period of year 2009 / 2010.

Reporting By: Prasanna Rodrigo