Prime Minister orders an investigation into CSE power failure

The Colombo Stock Exchange is currently the heart of the islands equities market. It is the
core of the developmental process. Its management requires competent persons who understand the nature of this mechanism and its dynamics. A stock market that goes down because of a power failure loses much of its credibility.

The inquiry must examine how the management failed to ensure that effective back up power sources were not available with provisions to kick in and ensure uninterrupted trading, and that these back up power sources are tested daily before and after the commencement of trading and these test results logged and maintained safely.

The success of the current blue/green government and indeed the future of this island depends on the rapid realization of its potential to function as an entrepot for capital flowing into the regions of the IOR_ARC, SAARC, BIMSTEC, ANTARCTIC and the global marketing, sales and transshipment hub for raw materials, goods and services produced in these regions. The first step in this direction is the generation and sustenance of a regional stock exchange here conceptualized as ISBAC – the IOR_ARC, SAARC, BIMSTEC, ANTARCTIC stock exchange of COLOMBO – through which capital can be raised to invest in operations in these regions linked by the island following the model already established and operating on the Colombo Stock Exchange.

The current management of the Colombo Stock Exchange appears to have little understanding as to the urgency of the need to facilitate the emergence of such a mechanism. Their ability to work at the pace demanded by the velocities of capital markets appears to be open to question.

The adoption of the Global Industry Classification Standard (GICS) to classify its listed companies is awaited. The Central Counter Party Clearing House can easily be up and running within a few weeks. There is no need to wait for the World Bank to complete its project on financial sector modernization. All that is required is the amendment of certain sections of the Securities and Exchange Commission Act to enable the smooth setting up of a globally funded regional stock exchange – and of course the interest and initiative of the Colombo Stock Exchange.

The generation of this regional stock exchange will bring highly functional human resources into the island to manage the interests of investors. Investment houses will establish themselves and regional corporate headquarters of listed corporate vehicles and operations in the regions linked by the island will follow. Centers of training for excellence for advanced human resources will emerge along with recreational, medical and all other services required. Habitat and infrastructure are already in the process of construction. Tourism is likely to grow along with retail trade. The island will become a giant showcase and sales center for all types of produce from the regions that it links and will be the location where deals are inked, partnerships and collaborations built and orders placed. Banking will flourish by financing these transactions and regional dispute resolution mechanisms will emerge and thrive.

The financial assets deployed through the islands financial infrastructure will turn the island into an important node in the global network of conflict resolution and a vital element of regional geo strategic equations. It will emerge as the core of the regional geo political strategic nexus and its harbors and oil tank farm will be developed, the Asian highway rail and road link constructed, commercial airfields developed and the island will become the platform housing the regional strategic function of the global developmental process as it impacts the regions linked by the island. This will lead to the strategic capacity of the island being developed and deployed as the premier outpost of the global disaster analysis, management and mitigation system, emergency and humanitarian response system and resource base and stockpile as well.

The state will draw revenue from all these business activities and use this stream to finance the gradual emergence of the resilient and sustainable social support and species survival
systems and supply chains (R7SC) and engage the global processes of environmental repair, rehabilitation, regeneration and development (GPE3RD) turning the island into a well managed location with an increasingly educated, serene and satisfied population that constantly moves closer towards achieving the Sustainable Development Goals and the building of resilience as well as more advanced mechanisms that have been conceptualized and documented.

The task of realizing this potential requires human resources with high levels of Conceptual Capacity and Strategic Competence. It is high time that the Colombo Stock Exchange sourced them.