Local investor confidence was shaken recently first when a licensed savings bank collapsed and then as the securities regulator commenced an insider dealing investigation against its own chairman.
However, the crises had little effect on the stock market. Banking stocks in fact gained in anticipation of good earnings reports while Aitken Spence stocks, at the heart of the insider dealing fiasco, held their ground.rn
rnThe scandal was in sharp contrast to corporate bankruptcies in the US where the stock market dipped in response.rn
rnBut here in Sri Lanka key pieces of legislation, directly affecting public companies and their operations have been stuck at draft stage for years.rn
rnThe proposed new Companies Act has been in draft form for over 6 years. A code meant to improve corporate governance in the private sector has met the same fate. rn
rnldblquote The (proposed) Act and the code are now six years old and we have not been able to get them into place,
dblquote pointed out Eagle In