The enactment of the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021 (SEC Act), has ushered in a new era for the professional auditors of Sri Lanka, auditing market institutions, market intermediaries, and listed public companies. They are now required to act as ‘gate keepers’ and ‘whistleblowers’ to protect shareholders and the investing public from general accounting fraud.

Sweeping changes have been introduced to the Corporate Governance Rules enshrined in the Listing Rules of the Colombo Stock Exchange. This is being done in a bid to qualitatively and quantitatively improve governance of listed companies in the interest of accountability and transparency.

Effective from 01 October 2024, requirements have been introduced for listed companies to establish and maintain policies on Environmental, Social, and Governance Sustainability (ESG).

Market manipulation involves the unwarranted interference in the operation of demand and supply for securities in a stock market. 

Interference in the market may be achieved where manipulators disseminate misleading or false information about an issuer or its securities or through artificial transactions intended to convey false information regarding the forces of demand and supply for the market or price of securities.