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Message: <blockquote data-quote="lkdood" data-source="post: 8055642" data-attributes="member: 92282">The 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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