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Sri Lanka parliament to probe stock market scams, find culprits

COLOMBO (EconomyNext) – Sri Lanka’s Prime Minister Ranil Wicrkremasinghe has ordered a probe into stock market scams during a bubble that burst in 2012, and tasked a parliamentary committee come up with countermeasures.

During the stock market bubble that ended in 2011/2012 there were allegations of pump and dump scams, insider dealing and frauds involving pension funds of private citizens managed by the state.

A ‘parliamentary select committee’ has been asked to find whether any illegal deals took place from 2010 and identify the persons who committed them, as "certain individuals in high positions in Government and elsewhere" were reported to be engaged in malpractices.

The committee has also been asked to come up with countermeasures to prevent such frauds from occurring again.

The move comes as a separate inquiry is underway on alleged insider dealing by Perpetual Treasuries, a company connected to the son-in-law of Central Bank Governor Arjuna Mahendran.