Jun 08, 2015 (LBO) – Sri Lanka is in the process of establishing a ‘Serious Frauds and Financial Crimes Division’ to act against alleged irregularities in the Colombo Stock Exchange, the Prime Minister said.
Sri Lanka is in the process of establishing a ‘Serious Frauds and Financial Crimes Division’ to act against alleged irregularities in the Colombo Stock Exchange, the Prime Minister said.
“If you look at the stock exchange we are cleaning it up,” Ranil Wickremesinghe, Prime Minister of Sri Lanka said at the launch of the International Arbitration Center at the World Trade Center in Colombo recently.
“So this is why we need a Serious Frauds and Financial Crimes Division with the intention of following the Serious Fraud Office in the United Kingdom and legislate it subsequently.”
Much took place in Sri Lanka’s Stock market from 2010-2014 and Wickremasinghe earlier this year ordered a probe into stock market scams during a bubble that burst in 2012.
Analysts says that during the stock market bubble that ended in 2011/2012 there were allegations of pump and dump scams and insider dealing and certain individuals in high positions in Government and elsewhere were reported to be engaged in malpractices.
Wickremasinghe also spoke of the need of an Organized Crimes Division and drug trafficking laws in the Island.
“Next is organized crime. We cant’t allow organized crimes or commercial crimes,” he said.
“And we will also bring in laws to deal with drug trafficking in Sri Lanka.”
The Sri Lankan government is aiming at positioning Sri Lanka as an international arbitration hub in the region and through this center, international companies would be able to resolve any commercial-related disputes.
This can be a good source of foreign exchange, the Prime Minister said.