Shareholders must be informed of COVID-19 impact on Sri Lankan companies-CSE

The impact of COVID-19 on listed companies and how these Sri Lankan listed companies are responding to the impact is material information that must be conveyed to shareholders in a timely manner, the Colombo Stock Exchange (CSE) said on Monday

“The CSE is of the view that the effect COVID -19 has on the listed companies and how the company has responded to the impact of the pandemic is material for the investors in making investment decisions,” it said in a circular to CEO’s and other stakeholders in listed companies posted on the CSE website.

The circular said that the COVID-19 pandemic is impacting the business activities of the listed companies in a substantial manner. Whilst many listed companies have recognised it as a significant risk in their business operations, its future effects on the respective companies remain uncertain.
“The CSE acknowledges that it may be difficult to assess or predict with precision the broad effects of COVID-19 on industries or individual companies. Further, the CSE also recognises that the actual impact would largely depend on several factors beyond a company’s control and knowledge. The CSE has always considered that timely, robust, and accurate information provided by the listed companies is of paramount importance to the investing public for the sustenance of a fair and orderly market,” it said. 
The CSE said that shareholders and investors are closely monitoring the effects of the COVID-19 pandemic on the business performance/operations of the listed companies and expect the companies to provide meaningful and accurate information in a proactive manner.
“In this context, although the pandemic is still continuing, and it is difficult to forecast the outlook, it is expected that the listed companies give due consideration in making a timely disclosure to the investing public in this regard,” the circular said.