Sri Lanka’s Swarnamahal Financial Services transferred to default board

Jan 19, 2017 (LBO) - Sri Lanka's Swarnamahal Financial Services (SFS) has been transferred to default board with with immediate effect following the Securities and Exchange Commission directive on prohibiting related party transactions, a statement said. "In view of several significant issues (which are set out in the SEC directive dated 18th January 2017), the SEC has requested the CSE to transfer the securities of the company to the Default Board of the CSE with immediate effect until the company complies with Rules 7.

10.2(a), 7.10.5(a) and 7.10.6(a) of the CSE Listing Rules," a statement said. "Accordingly, the securities of the above Company have been transferred to the Default Board with effect from today (19th January 2017)." Yesterday, Sri Lanka’s markets regulator prohibited Swarnamahal Financial Services (SFS) from related party transactions including write-off of outstanding debt, saying it was in ‘dire’ financial straits with negative net asset value of over a billion rupees. The prohibition is effective until SFS complies with corporate governance requirements of the Colombo Stock Exchange listing rules.