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Sri Lanka regulator suspends NatWealth Securities business

ECONOMYNEXT – The Central Bank of Sri Lanka said the business of NatWealth Securities Limited (NWSL), a primary dealer in government bonds, has been suspended for failing to comply with directions made by the regulator.

“The CBSL will take necessary measures to ensure that this regulatory action does not have a disruptive impact on the Government Securities market,” the regulator said.

“Action will also be taken to facilitate the handling of the interests of the customers and counterparties of NWSL in an orderly manner.”

NatWealth will be suspended for six months, the Central Bank said.

NatWealth was also suspended in 2019 for a time.

The full statement is reproduced below:

Suspension of Business of NatWealth Securities Limited

The Monetary Board of the Central Bank of Sri Lanka (CBSL) at its meeting held on 28.05.2020, having considered the continuous failure to comply with the Directions applicable to NatWealth Securities Limited (NWSL) as a Primary Dealer, acting in terms of the Regulations made under the Registered Stocks and Securities Ordinance and the Local Treasury Bills Ordinance, has decided to suspend NWSL from carrying on the business and activities of a Primary Dealer for a period of six months with effect from 01.06.2020.

The CBSL will take necessary measures to ensure that this regulatory action does not have a disruptive impact on the Government Securities market. Action will also be taken to facilitate the handling of the interests of the customers and counterparties of NWSL in an orderly manner.

(Colombo/Jun01/2020)

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