SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA

Representations were made to the Securities and Exchange Commission (SEC) on 24 September 2004 by the Attorney-at-Law for Mr. M. L. Mack reiterating his innocence of any wrongdoing in relation to the offence of insider dealing in the trading of shares in Aitken Spence and Company Limited in the year 2002 and seeking to conclude the outstanding matter.

The Commission at its meeting on 24 September 2004 decided that the matter can be compounded if Mr. M. L. Mack made a payment of Rupees Three Million and Three Hundred Thousand to the Compensation Fund established under the SEC Act. The SEC Act provides for any offence to be compounded for a sum of money not exceeding one-third of the maximum fine imposable for such offence. Mr. M. L. Mack accordingly made the payment. The action instituted by Mr. M. L. Mack in the Court of Appeal against the SEC and the Commission Members will therefore be withdrawn.

In terms of the SEC Act, compounding does not entail a finding of guilt.

Benny P. Tissera
Officer in charge
SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA