SEC wraps up probe on Dharmadasa, son and 7 others

The Securities and Exchange Commission (SEC) of Sri Lanka's investigation involving the alleged manipulation of share prices of Nawaloka Hospitals by Sri Lanka's cricket chief, Jayantha Dharmadasa, his son U.H. Dharmadasa and seven others was wrapped up on Friday.

Jayantha Dharmadasa

SEC officials said that subsequent to the SEC filing its case in court, a request was made by the two parties to submit further evidence. "In that respect, they (Jayantha Dharmadasa and UH Dharmadasa) appealed to the Courts to submit whatever they wanted to the SEC. We have cross examined and noted the evidence and the case should go on," an official said.

Nawaloka Hospital sold a 30% stake to the public, subsequently raising a total of Rs.300 million. Mr. Dharmadasa and his son are majority share holders in the hospital. SEC officials said the nine individuals are being charged with ‘price manipulation of the Nawaloka shares and violation the SEC Act to the extent of creating a false and misleading appearance in the shares of Nawaloka Company as well as market manipulation.'

The official explained that if found guilty of the charges, the nine accused would face a term of imprisonment, a financial penalty or both.