SEC Suspends Three Sri Lankan Stock Brokers for Securities Violations

Brokers accused of using insider information to trade ahead of EPF and other institutions

Sri Lanka’s Securities and Exchange Commission (SEC) has suspended three stock brokers for three years after finding they violated securities laws. The brokers are accused of using confidential information to carry out unfair trades, particularly involving the Employees’ Provident Fund (EPF) and Sri Lanka Insurance Corporation.

The SEC said these actions were against the rules meant to ensure fairness in the stock market. Legal action is also being considered in some cases.

Roshantha Fernando – Used Inside Information from SLIC

Roshantha Fernando has been suspended for three years for trading shares using his wife’s account while having advance knowledge of transactions by the Sri Lanka Insurance Corporation (SLIC). The trades involved shares of Browns Investments, Royal Ceramics, and Richard Pieris.

The SEC has referred his case to the Attorney General to consider filing criminal charges under Sri Lanka’s securities law. He is also disqualified from holding any senior position or working with clients in a stock brokerage firm until June 2028.

Jaliya Wijeratne – Front-Running EPF Trades

Jaliya Wijeratne has been accused of using non-public information to trade ahead of major purchases by the Employees’ Provident Fund (EPF) in the shares of Piramal Glass Ceylon PLC. The SEC says this is a clear case of front-running, which is illegal under market regulations.

Legal proceedings are being prepared, and he has also been disqualified from working in the securities industry for three years starting from June 6, 2025.

Akila Milanka Induruwage – Aided Others in Front-Running

Akila Milanka Induruwage has also been suspended for three years. He is accused of helping others front-run EPF trades in Piramal Glass shares and being involved in planning the improper trades.

The SEC is taking steps to initiate legal proceedings, and like the others, he is banned from holding positions involving client interactions or management in a brokerage firm until June 2028.

What Is Front-Running?

Front-running is when a broker uses secret or advance information about a large investor’s trade to buy or sell shares for their own benefit before the actual trade happens. It is considered unethical and illegal because it gives unfair advantages and can harm other investors — especially large funds like the EPF, which manage retirement savings for millions of people.

SEC Says Action Is Meant to Protect Public Trust

The SEC said these suspensions are meant to uphold integrity in Sri Lanka’s financial markets and protect ordinary investors. It emphasized that anyone found using confidential information for personal gain will face strong penalties.