President Mahinda Rajapaksa and Gen Sarath Fonseka there is more than 20,000 shareholders waiting for a reasonable solution to Vanik. Can you deliver?
Vanik was incorporated in the 1980s and deals with local and foreign communities through land sales, finance etc over a period of 25 years. It is listed in the Colombo Stock Exchange (CSE) and has more than 20,000 of shareholders.
In the past two years, Vanik has stopped trading shares without proper notification to the shareholders. Even the CSE hasn't taken any action to inform shareholders and other of this move. The CSE/Central Bank is responsible for listed companies by monitoring and auditing because the CSE gets commissions from the shareholders while they are trading stocks. Sometime back there was an article in the newspaper saying that Vanik is going to launch a new restructuring plan. But nothing has happened or we haven't been informed.
After the LTTE was defeated in May 2009, everyone spoke of the CSE and the investments it would attract. Even politicians were boasting that we are the number one in South Asia.
Top investor Jim Rogers also visited Sri Lanka after the LTTE threat was over but he is yet to make any investment.
We have been waiting for a solution to Vanik shares and the fear is that this would end up like the Sakvithi-Danduwan Mudali scams where no action is taken before the big guns vanished.
So, Mr President and Gen. Fonseka, this is the time to come to our rescue and that of more than 20,000 shareholders.
Vanik - Shareholder