SRI LANKA: SEC Issues Directive to CSE for Sanctions on Non-Compliant Companies

Friday October 31 2025

On 28^th October 2025, the Securities and Exchange Commission of Sri Lanka (SEC) issued a directive to the Colombo Stock Exchange (CSE) to initiate 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:

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 Sęcurities 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

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