The Securities and Exchange Commission (SEC) has reopened several investigations that were closed in previous years, involving a number of high-profile individuals, the Sunday Times Business learns.
The investigations relate to alleged financial irregularities at the Colombo Stock Exchange during the 2010–2015 period, with a focus on activities that took place under the administration of former President Mahinda Rajapaksa.
Among those summoned to provide statements are Member of Parliament Dilith Jayaweera, whose statement was recorded on May 12, as well as businessmen Nimal Perera, Rayynor Silva, Ashok Pathirage, and Tharana Thoradeniya.
The questioning is expected to examine specific instances of fraud and irregularities within the stock market during this period. Notices have also been issued to several other individuals, directing them to appear before the SEC for further inquiries in the coming days.
Mr. Perera, a former member of the Vallibel Group who now operates as an independent investor, was found guilty of market and price manipulation on two separate occasions by the regulator three years ago.
The SEC took action against him for allegedly creating a false market and engaging in misleading trading activities involving shares of Regnis Lanka PLC and ASCOT Holdings PLC in 2011.
The regulator filed the case on September 2, 2011, over activities that allegedly took place between September 5 and October 13 of that year.
In response to the SEC’s action, Mr. Perera requested that the charges be compounded. He subsequently paid a total of Rs. 6.6 million — Rs. 3.3 million for each offence — to the SEC’s compensation fund without admitting liability.
Following the payment, the SEC compounded the case and concluded further legal proceedings.
