Securities and Exchange Commission of Sri Lanka (SEC)
Oversees Sri Lanka’s securities markets and investor protection.
Tags:Forex RegulationBasic Information
The Securities and Exchange Commission of Sri Lanka (SEC) is the statutory regulatory body overseeing the capital markets in Sri Lanka. Established under the SEC Act No. 36 of 1987, it operates from its headquarters at Level 28-29, East Tower, World Trade Centre, Colombo 01. The SEC’s mission is to promote a fair, efficient, and transparent securities market while safeguarding investor interests. Its official website (sec.gov.lk) provides updates on regulations, vacancies, and investor education resources.
Historical Background
The SEC was founded in 1987 under the Securities and Exchange Commission Act No. 36 of 1987, later amended in 1991, 2003, and 2009. The original legislation was repealed and replaced by the SEC Act No. 19 of 2021, which modernized its regulatory framework to align with international standards like IOSCO. The agency has evolved from a market supervisor to a proactive regulator emphasizing investor protection and market integrity.
Legal Authority and Regulatory Framework
The SEC derives its powers from the SEC Act No. 19 of 2021, which mandates:
- Regulation of securities issuance and trading
- Licensing of market intermediaries (e.g., brokers, investment managers)
- Enforcement against market abuse and fraud
- Operation of an Investor Compensation Fund
It collaborates with the Colombo Stock Exchange (CSE) and coordinates with the Central Bank of Sri Lanka on cross-sectoral financial policies.
Core Functions and Regulatory Scope
The SEC’s oversight covers:
- Market Participants: 27 stockbrokers, 23 investment managers, 16 CIS operators, and 10 corporate finance advisors as of 2025
- Products: Equities, debt instruments, unit trusts, and emerging products like REITs and Sukuk
- Investor Protection: Financial literacy programs in Sinhala, Tamil, and English; enforcement against unauthorized advice
- Market Surveillance: Monitoring for insider trading and price manipulation
Contact Information
Address: Levels 28-29, East Tower, World Trade Centre, Echelon Square, Colombo 01, Sri Lanka
Phone: +94 11 2143843
Fax: +94 11 2439149
Email: [email protected]
LinkedIn: Official Profile
How to Verify Regulatory Status
To confirm if a firm is SEC-regulated:
- Check the Registered Investment Advisers list on the SEC website (e.g., ACS Capital, Acuity Stockbrokers)
- Search enforcement actions under the Investigations and Enforcement section
- Cross-reference with the Central Bank of Sri Lanka for dual-regulated entities
Relevant Navigation
The Australian Securities and Investments Commission (ASIC) is an independent government institution established in 2001 under the Australian Securities and Investments Commission Act. It independently regulates companies, investment activities, financial products, and services.
