Business Times


Issues over IPOs

Over 300 million shares have been sold recently in a private placement at Rs 6 per share and the price at the IPO is Rs 14 for 172 million shares. What will happen to the buyers who buy at Rs 14 at the IPO if the parties who bought at Rs 6 decide to sell their shares below Rs 14?

Will the Securities & Exchange Commission explain its position?

B.S. Perera, Kiribathgoda

On rupee devaluation and the UNP

I write with reference to an article published in the Business Times on April 17 titled "Rupee devaluation: Is it to save the country, exporters or the opposition?" by Luxman Siriwardena and Chanuka Wattegama.
The authors say that the criticism leveled by the opposition with respect to the exchange rate management by the Government resulting in an appreciating Sri Lanka Rupee is insincere; "It would be too naïve to assume sincerity."

As the primary source of the said criticism I wish to state that as a responsible opposition we have and will continue to point out Government economic policy that is, in our view, detrimental to the growth and development of Sri Lanka. The data clearly indicate that the Government focus is not on exports anymore with exports as a share of GDP declining steadily over the years.

I am sure the authors will agree with me that a realistic exchange rate is a minimum prerequisite for strong growth in exports as well in import competing industries. It is amusing that the authors completely missed out on the most important issue of the appreciating trend of the real exchange rate, or the inflation adjusted exchange rate that reflect foreign competitiveness of our products and services, that the opposition has been arguing should be corrected.

One would have expected the authors to at least refer an introductory economics textbook that discusses the concept if they were not familiar with the subject before accusing us of being insincere in our criticism; for who's benefit, I do not know?

Harsha de Silva MP, United National Party

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