Tue, 13 Apr 2021 Today's Paper

Multinationals should create more value for Lankans: Kishu

5 May 2016 11:00 am - 0     - {{hitsCtrl.values.hits}}

A A A

The multinational corporations (MNCs) should be creating more value for Sri Lankan citizens, Chevron Lubricants Lanka PLC Managing Director Kishu Gomes said. “We have a 49 percent float compared to the other MNCs.

This is what the country needs in terms of creating value for the locals,” he said. The other MNCs, which are listed on the Colombo Stock Exchange (CSE), are almost fully owned by their parents, stifling liquidity and discouraging further investments to grow the bourse.

The issue is compounded by a public float listing rule, which is set to come into force by December 2016. The main board companies should have a 20 percent public float spread among 750 shareholders or a 10 percent public float representing Rs.5 billion market capitalization spread among 500 shareholders while the secondary board companies should have a 10 percent public float among 500 shareholders.

Indications are that the MNCs are pressuring the CSE and the Securities Exchange Commission (SEC) with delisting from the bourse, due to a reluctance to decrease ownership and profits. Several subsidiaries of MNCs have already been moved to the secondary board. Delisting of such giants could cause severe impacts to the investor sentiment on the local bourse, which had caused both the CSE and market regulator to tread lightly around the issue until recently.

The SEC last month said that it would be firm on the public float but would be flexible on the time duration and would consider any alternative requirements. Gomes said that staying listed gives benefits to MNCs, including assuring the local government, citizens and global investors and interested parties that all rules and regulations are being met.

“Transparency gives us a lot of benefits. It allows me to build a corporate brand,” he said. He noted that Chevron does not employ any foreigners either, which creates more opportunities for locals. “We are buying from the local market and only import what can’t be found here. We produce here and export as well,” Gomes said. The other MNCs operating in Sri Lanka strictly adhere to this principle—possibly due to the shortcomings in other aspects—and publicize their efforts constantly. The Sri Lankan government is continuing its efforts to attract more MNCs to Sri Lanka. (CW)

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Justice Delayed is Justice Denied!

Two years after the Easter Sunday carnage people are left with false hopes an

Cinematic links between director Lester and actor Gamini

Sinhala cinema’s pioneering director Lester James Peries is the Sri Lankan

Difficult to forgive Easter Sunday bombers: Brother of tourists killed in Sri Lanka

This year marks two years since the deadly Easter Sunday attacks in Sri Lanka

All about the new variants of Covid-19

With the Sri Lankan government successfully completing the first phase of the

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.