How Thilak got the job

 Wednesday, 18 March 2015

After the Presidential Election of 8th January Tilak Karunaaratne promised Ranil Wickremasinghe that he will expose so many wrongs of the previous regime if he is re-appointed chairman SEC. He told Ranil that several investigations he had started during 2011-2012 have been swept under the carpet by then commission of SEC.

Ranil wickremasignhe was quite pleased with this proposal, as UNP was all out to expose Rajapaksha regime as part of its campaign in preparation for the next General election. So disregarding the fact that SEC chairman Nalaka Godahewa and his Commission had ushered the Golden Era of Colombo Stock market where for the first time in the daily market turnover had reached Rs 2 Bn average and ASPI had grown from 4350 to 7550 in just two years, Ranil wickremasighe removed Godahewa and replaced him with Tilak Karunaratne.

We remember that Karunaratne was removed from SEC in 2012 June by then president Mahinda Rajapaksha because he was clearly responsible for crash of the market from 7200 points to 4600 within just 9 months. The primary reason was the total lack of confidence amongst investors due to stupid remarks of the SEC chairman who was painting a gloomy picture of the market. By constantly talking about a so called stock market mafia and starting investigations against each and every active participant in the market the arrogant and ignorant Tilak was letting his own organization down. It was Godahewa who came to the recuse of the investors and made CSE, Asia’s best performing market by end 2014. In January 2014, Capital Finance International (CFI), a print journal and online resource, based in the United Kingdom recognized as the 'Most Sustainable Growth Exchange' in Asia for 2014

Sustainable ? My foot !!!! Not anymore with Tilak in hot seat.

Within 50 days of Tilak assuming duties as Chairman SEC, the Colombo Stock Exchange has once agains become one of worst performing markets in the world. It had dropped 500 points already. Daily turnover of last Friday was only Rs 200Mn.

Why is history repeating ?
Some people think market is not performing simply because of economic uncertainty. Wrong. During 2012/2014 Market always performed despite many economic setbacks thanks to dynamic leadership who kept the energy levels high through road shows, public seminars, Media Shows, Press Releases, Interviews , continuous industry consultations and More than anything better regulation of the market.

That is what we now lack at SEC with Tilak at hellm.

It is not difficult to understand why is history repeating and market is crashing?
It is because Tilak is repeating exactly the same mistakes he did in 2011/2012

1) Telling the world through his favorite journalist infamous Durutu Edirimuni of Sunday Times that the Colombo stock market is a corrupt place

2) Continuously talking about need for proper investigations though he has failed to find wrong with a singe investigation competed by SEC during DR Godahewas tenure. He now has a serious problem of explaining this to Ranil because it was the basis of his appointment

3) Cancelling 10 point project initiatives and the vision 20:20 plans that former Chairman had started and openly proclaiming hat SEC has no development role. In this he is quite similar to his political bosses who have stopped all development work in the country.

4) Witch hunting within SEC trying to get rid of the most experienced official of SEC, Dammika Perera. He tried same during his previous tenure

5) Rebuilding his clan of market disrupters at SEC. During his 2011/2012 most of his disastrous actions were fuelled by 4 Directors namely; Chandu Epitawala, Namal Kamalgoda, Dissa Bandara and Vajira Abeygoonewardane. The former three have now left SEC and Tilak is making preparations to bring them back. He has already sought commission approval to appoint Chandu Epitawala as a Consultant to SEC and Dissa Bandara is expected to be brought back as DG. Namal Kamalgoda would be the next.