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2025-01-01

SEC Sri Lanka Directive on Disciplinary Actions for Listing Rule Non-Compliance

The Securities and Exchange Commission of Sri Lanka directs the Colombo Stock Exchange to impose disciplinary actions or administrative sanctions on listed entities and their directors for specific Listing Rule violations. The directive mandates enforcement regarding delisting procedures, the release of misleading information, unauthorized trading by insiders while securities are on a watch list, and corporate governance failures. This order becomes effective immediately upon issuance following the Commission's decision at its 524th Meeting.

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SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ශ්‍රී ලංකා සුරැකුම්පත් සහ විනිමය කොමිෂන් සභාව இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு

BY HAND

Ref: SEC/DDG/2025/10/89

28th October 2025

TO: THE COLOMBO STOCK EXCHANGE

DIRECTIVE ISSUED IN TERMS OF SECTION 16(c) TOGETHER WITH SECTIONS 26(5), 178(5)(a), 81(3), 175(1)(a) AND 175(4) OF THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ACT NO. 19 OF 2021

Further to the Securities and Exchange Commission of Sri Lanka (SEC) Directive dated 06th October 2023 bearing reference no. SEC/LEG/23/10/07 and SEC Directive dated 15th May 2024 bearing reference no. SEC/DG/2024/05/119, SEC hereby directs the Colombo Stock Exchange (CSE) to take disciplinary actions and/or impose administrative sanctions against listed entities and/or its directors for non-compliance in respect of the Listing Rules of the CSE pertaining to the following, pursuant to the decision taken at its 524th Meeting held on 21st October 2025 having considered the discussions held with the CSE in respect of the same:

  1. Delisting.
  2. Release of misleading and/or false information to the Exchange and/or the Market in terms of the Listing Rules of the CSE.
  3. Exercising the right to transact directly or indirectly in the Securities of the Entity whilst such Securities are on the Watch List without obtaining prior approval from the SEC by the directors and the Chief Executive Officer of the Listed entity, their close family members, the parent entity of the Listed entity and any entity in which such Director, Chief Executive Officer, their close family members or the parent entity directly or indirectly hold fifty per centum (50%) or more of the voting rights.
  4. Corporate Governance.

This directive will be effective from the date hereof.

[Signature]

Tushara Jayaratne OFFICER-IN-CHARGE/ DEPUTY DIRECTOR GENERAL RZ/MA/FM/IB

28 සහ 29 මහල, ලෝක වෙළඳ මධ්‍යස්ථානය 28 மற்றும் 29 ஆம் மாடி, கிழக்கு கோபுரம் Level 28 & 29, East Tower A Member of එචලන් චතුරශ්‍රය, කොළඹ 01. உலக வர்த்தக மையம், எச்சலன் சதுக்கம் World Trade Centre கொழும்பு 01. Echelon Square, Colombo 01, Sri Lanka. IOSCO International Organization දුරකථන } +94 11 2143843 ෆැක්ස් } +94 11 2439149 වෙබ් අඩවිය www.sec.gov.lk of Securities Commissions Telephone தொலைநகல் www.cmet.sec.gov.lk Website www.cmic.sec.gov.lk

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