SEC Steps up Enforcements with Record Rs. 200Mn+ Recoveries in 2025 📈

The Securities and Exchange Commission of Sri Lanka (SEC) significantly boosted its regulatory actions in 2025 under the SEC Act No. 19 of 2021, focusing heavily on deterring market abuse and boosting investor confidence. • Overall Figures: Total disclosed enforcement recoveries surpassed Rs. 207.4 Mn through settlements, administrative penalties, and compounding payments. • Record Settlement: Slapped a historic Rs. 188.1 Mn settlement agreement—the largest ever under the Act—on an investor for false trading and market-rigging offences. • Sector & Corporate Fines: • Two licensed corporate finance advisers were penalized Rs. 5 Mn each for rule violations. • A listed public company was fined Rs. 6 Mn for regulatory breaches. • An individual paid Rs. 3.3 Mn to compound a trading rule violation. • Insider Dealing: Reached a settlement with two individuals for insider dealing, though the final monetary value remains undisclosed. • Investigation Case Load: The SEC handled 48 cases in 2025 (including 26 carried forward), down from 62 cases in 2024. Of these, 10 were new inquiries, and 7 concluded directly in enforcement actions.