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Message: <blockquote data-quote="lkdood" data-source="post: 8057327" data-attributes="member: 92282">UNP warns of recessionThe main opposition UNP warned that illegitimate investments in  the  Colombo Stock Exchange (CSE) and unlawful investments made by the  EPF  will lead to serious consequences right to the extent of a total   economic recession in the country.            UNP National list MP Dr. Harsha De Silva told said the  sky rocketing  boom which the CSC recorded recently was something which  was achieved  outside basic fundamentals associated with it.           He said the shares prices of some companies which were bankrupt  had  increased suddenly and added share prices have increased by 300  percent  in the case of some such companies. In addition he alleged that   investments in some unknown companies have also increased  dramatically.            The UNP MP said the 10 percent limit which the government  introduced  will make the small scale investors to leave the market by  selling their  shares off because trading of shares of one company will  be halted when  the share price is increased by 10 percent or reduced by  10 percent.            “The CSE today has turned into a casino,” Dr De Silva said  warning that  this will lead the country into a total recession.. He  made this point  by recalling that the collapse of Wall Street led to  the total economic  recession in the USA.            Coming out with another staggering disclosure, the UNP MP  alleged that  the EPF which is controlled by the Central Bank(CB) had  invested in  several banks, violating the investment guidelines  established by the CB  itself. He explained that the EPF had invested in  several private banks  including the crisis stricken Seylan Bank  violating the investment  guide which prevents EPF from investing in  banks.     Dr. De Silva charged that there is a serious conflict of interest in   this approach as it is the Central Bank which sets interest rates  while  it is aware of all the inside information of these banks through  its  monitoring body on financial institutions .            In addition he said the EPF had also invested in a leading  Colombo  Hotel violating the guideline which says the fund can only  invest in a  blue-chip companies.             The UNP MP alleged that these steps taken on financial  investments are  similar to Deputy Minister Mervin Silva’s action of  tying a government  servant to a tree.<a href="http://www.dailymirror.lk/index.php/news/5669-unp-warns-of-recession.html" target="_blank">Dailymirror</a></blockquote>

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