ECONOMYNEXT – Sri Lankan bourse, Colombo Stock Exchange (CSE), has partnered with a state-run Rajarata University to educate undergraduates to improve financial literacy among Sri Lankans, amid occasional pump and dump deals which have hit investor sentiment and deprive growth in the risky assets.
Sri Lanka’s financial literacy has been low and many rural investors had to leave with empty hands in 2011 when the market collapsed after some alleged pump and dump deals. The vicious cycle still continues time to time, dealers say.
These deals occur through a network of investors who first buy shares and boost the prices gradually based on speculations and after some times start to sell them to retail investors at an over-valued price. Later, the prices start to collapse because people realize that the stocks are not worthy at the high prices.
“It is crucial to promote financial literacy among Sri Lankans, especially among undergraduates, who are a key segment of the population equipped to contribute to an economically stable future,” Rajeeva Bandaranaike, CEO of the CSE, said in a statement
The initiative offers practical educational training and internship opportunities with the CSE for students engaged in accountancy and finance, business management, and economics-related degree programmes.
“The present-day challenges can only be solved through strategic alliances,”S. Ginigaddara, the Vice Chancellor of Rajarata University said.
He said the agreement between the two parties can be identified as a strategic alliance, that promotes collaborative research projects, capacity development of undergraduates, and stock market education within the University community. (Colombo/Sep30/2022)