SEC: Market manipulation in 2010-2015 back in focus

The Sri Lanka Securities and Exchange Commission (SEC) has reopened certain investigations which were closed in previous years, involving high-profile individuals, Times Online was informed by certain stockbrokers.

The investigations are into alleged financial irregularities at the Colombo Stock Exchange during the 2010–2015 period, focusing on activities under former President Mahinda Rajapaksa's administration. Key figures summoned for questioning include Member of Parliament Dilith Jayaweera (his statement was recorded on May 12), along with businessmen Nimal Perera, Rayynor Silva, Ashok Pathirage, and Tharana Thoradeniya.

The questioning is expected to probe into specific instances of fraud and irregularities within the stock market during this timeframe. Notices have been issued to other individuals, directing them to appear before the SEC for further inquiry in the coming days.

Mr. Perera, a former member of the Vallibel Group and now an independent investor, was found guilty of market and price manipulation on two separate occasions three years ago by the regulator.

The SEC acted against him for creating a false market and misleading trading activity in the shares of Regnis Lanka PLC and ASCOT Holdings PLC in 2011. The SEC filed the case on September 2, 2011, concerning activities that occurred between September 5 and October 13 of that year.

In response to the SEC’s actions, Mr. Perera requested compounding the charges. He paid a total of Rs. 6.6 million, comprising Rs. 3.3 million for each offence, to the SEC's compensation fund without admitting liability. The SEC decided to compound the offence under Rule 12 and Section 51A, concluding the matter without further legal proceedings.