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Short Selling

The Public Enterprises Reform Commission (PERC) has billed just over a million rupees for the government so far, selling its minority stakes in listed companies.
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The Public Enterprises Reform Commission (PERC) has billed just over a million rupees for the government so far, selling its minority stakes in listed companies.

Small parcels including stakes in Commercial Bank, Distilleries and Kelani Tires have been sold recently, while 177,300 shares in National Development Bank was sold late last year.

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The government’s minority stakes have an estimated market value of over a Rs.
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1.2 bn, and includes shares in Galadari Hotel and Lanka Cement.

Disposal however has been slow, with reduced investor interest due to pricing issues or investors not valuing them as long term strategic investments.

PERC meanwhile has set up a three-member committee including its Director General, the head of the Finance Ministry’s Public Enterprises Department and the officer in-charge of dispensing the shares at the Commission, to speed up the sales.

PERC officials say they would consider selling the stakes in the open market if investor interest continues to be weak

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