T he Securities and Exchange Commission of Sri Lanka instituted proceedings in the Magistrates Court, Fort on the 17 th of March 2006, against Mr. Jagoda Arachchige Sunil Piyawardena, Mrs. Chandra Piyawardena and Ms Jagoda Arachchige Chamila Wijeyanthi Piyawardena on charges related to ‘Insider Dealing'. The offences to which the charges relate include conspiracy in the commission of Insider Dealing and Insider Dealing.

The charges have been framed against Mr. Jagoda Arachchige Sunil Piyawardena on the basis that he was a Director and the Chief Financial Officer of Nawaloka Hospitals Ltd., and a Director of the Company ESES Secretaries (Pvt) Ltd., the Company Secretary to Nawaloka Hospitals Ltd., and against Mrs Chandra Piyawardena on the basis that she was a Director of the said ESES Secretaries (Pvt) Ltd., and that both parties traded in the shares of Nawaloka Hospitals Ltd., on the basis of price sensitive information prior to its disclosure to the market.

Charges have also been filed against Ms Jagoda Arachchige Chamila Wijeyanthi Piyawardena on the charge of Insider Dealing on the basis that she traded in the shares of Nawaloka Hospitals Ltd., on the basis of price sensitive information prior to its disclosure to the market. She is the daughter of Mr. Jagoda Arachchige Sunil Piyawardena and Mrs. Chandra Piyawardena.

In terms of the Securities and Exchange Commission Act of Sri Lanka No 36 of 1987 as amended by Act No 26 of 1991 and Act No 18 of 2003, the offences with which the parties referred to above have been charged, could attract liability to a fine not less than Rupees one million or to imprisonment of either description for a term not less than two years and not exceeding five years or to both such fine and imprisonment.

Director-General

Securities and Exchange Commission of Sri Lanka