Watchdog

Aug 28, 2012 (LBO) – Nalaka Godahewa, former chairman of Sri Lanka’s tourism development agency has been appointed as the chairman of the Securities and Exchange Commission, a state official said. The SEC chairman before Karunarantne, Indrani Sugathadasa, a retired senior public servant also resigned saying she was upholding her principles.

Sri Lanka has had ever worsening problems with rule of law and justice since a civil service commission was abolished and the institution of ‘permanent secretaries’ was broken by two constitutions in 1972 and 1978.

Priyantha Fernando, Sujeewa Mudalige, S R Attygalle (from the Treasury), Ananda Silva (Central Bank) are the other commission members.

Godahewa this week resigned from George Steuart Finance (formerly Divasa Finance) a firm connected to investor Dilith Jayaweera, who has received letters from the SEC regarding several deals made by his investment firm.

Tilak Karunaratne, the former SEC chief resigned allegedly following pressure from Sri Lanka’s so-called stock market mafia, which has engaged in securities fraud.

He said probes in to 17 cases securities fraud were drawing to a close when he was forced to quit.

Influe