A dramatic and unexplained surge in a single stock forced the Colombo Stock Exchange to halt all trading, cancel completed transactions, and trigger urgent regulatory intervention, raising serious questions about market integrity and possible manipulation.
The Colombo Stock Exchange was forced to suspend all stock market activity yesterday morning (07) following what officials described as irregular trading in the shares of a particular company. In an extraordinary move, the Exchange also decided to cancel all stock transactions that had taken place before the suspension.
According to a statement issued by the Colombo Stock Exchange, the decision was taken on the advice of the Securities and Exchange Commission of Sri Lanka, underscoring the seriousness of the incident and the potential risk to market stability.
Trading began as usual at 9.30 am, but within minutes, unusual price movements were detected in a single counter. By around 9.53 am, authorities moved swiftly to suspend trading for the day after observing abnormal fluctuations, including reports that a share priced at around Rs. 7 had surged to an astonishing Rs. 25,000.
Despite expectations that trading might resume later in the day, the Colombo Stock Exchange confirmed that operations would remain suspended for the remainder of yesterday. Market participants were left stunned as regulators assessed whether the incident was the result of a system error, market manipulation, or intentional misconduct.
The Exchange has now confirmed that stock market transactions will resume as normal today (08), while investigations continue into the irregular trading activity. The incident has renewed debate around market surveillance, investor protection, and the robustness of trading systems at the Colombo Stock Exchange.
