Sri Lanka SEC head resigns

Dec 01, Colombo: The Chairperson of Sri Lanka’s Security and Exchange Commission (SEC) Indrani Sugathadasa handed over her resignation today three days after the country’s stock brokers met with President Mahinda Rajapaksa.

The office bearers of the Brokers Association of the Colombo Stock Exchange met with the President on Monday (November 28) to express their concerns over the tightening of regulations by the Securities and Exchanges Commission (SEC) which they say contribute to the declining bourse this year.

During the meeting the President has agreed to remove the price bands set in place by the SEC to prevent stock market manipulation. The SEC has come under criticism by the stock brokers for the price bands.

The SEC chief has told Reuters that she had decided to resign, “upholding my principles” and the reasons for her resignation which were written in her resignation letter “would come to be known.”

The SEC has been taking measures to stop political manipulation of the share market at the Colombo Stock Exchange.

The news of Sugathadasa’s resignation boosted the Sri Lanka’s stock market on Thursday as brokers took the news as a sign that the President is listening to the broker’s requests.

Earlier last month the Director General of the SEC, Malik Cader who has been under criticism for his restrictions on credit trading in the SEC was appointed as senior advisor to Capital Markets Division at the Finance Ministry. The brokers blame his actions for the decline in Colombo bourse.

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