SEC Sri Lanka's Record-Breaking Year: Rs207 Million Recovered in Landmark Enforcement Drive

Historic Recovery Marks Turning Point for Capital Market Regulation

The Securities and Exchange Commission (SEC) of Sri Lanka has recorded the highest-ever enforcement recovery in its 38-year history, collecting Rs207 million through regulatory actions in 2025. The milestone signals a sharpened approach to market oversight under the commission's relatively new leadership.

New Chairman Sets the Tone

Hareendra Dissabandara, who was appointed SEC Chairman in October 2024, has been at the centre of this reinvigorated enforcement push. In a candid interview, Dissabandara outlined the commission's evolving strategy, which includes more aggressive pursuit of market misconduct, a willingness to publicly name and shame rule-breakers, and a concerted effort to persuade companies to remain listed on the Colombo Stock Exchange.

Naming and Shaming as a Deterrent

One of the more notable shifts in the SEC's regulatory posture has been its readiness to publicly identify entities and individuals found to be in breach of securities laws. This approach, often referred to as "naming and shaming," is intended to serve as a deterrent and to reinforce public confidence in the integrity of Sri Lanka's capital markets.

• The commission recovered Rs207 million in enforcement actions during 2025 — the largest such sum in its history.
• A disputed settlement has drawn attention to how the SEC handles complex enforcement cases.
• The regulator is also actively engaging listed companies to discourage voluntary delistings, which can reduce market depth and investor choice.

Keeping Companies on the Exchange

A growing concern for the SEC has been the trend of companies opting to delist from the Colombo Stock Exchange. Dissabandara has made it a priority to engage directly with company boards and management to understand their concerns and present the case for remaining publicly listed. A vibrant, well-populated exchange is seen as essential to developing Sri Lanka's broader capital market ecosystem and attracting both domestic and foreign investment.

The SEC's record enforcement recovery in 2025 is being viewed as a clear signal that regulatory complacency is no longer an option for market participants in Sri Lanka.

A Commission Finding Its Footing

With Sri Lanka's economy gradually stabilising following years of financial turbulence, the SEC's heightened activity comes at a critical juncture. Strengthening investor protection and market discipline is widely regarded as essential to restoring confidence in the country's financial institutions. The commission's performance in 2025 suggests that, under its current leadership, the SEC is positioning itself as a more assertive and credible regulator for the years ahead.