Mudalige out; Kalinga in

Monday, 3 September 2012 01:29 - - {{hitsCtrl.values.hits}}

The Securities and Exchange Commission (SEC) is likely to get a new Commissioner following the Government's decision to make a change as opposed to the previous move.

A Finance Ministry official confirmed there has been a change but didn’t give details.

Previously Pricewaterhouse-Coopers Partner and former Ex-Officio Commissioner Sujeewa Mudalige was named among new appointees but has since been dropped. He is expected to be replaced by lawyer Kalinga Indatissa.

As reported by the Daily FT last week, Mudalige was a surprise choice as he wasn’t in the original speculated list of new appointees. Indatissa was in the list but wasn’t announced.

Some market stakeholders weren’t happy with the inclusion of Mudalige, who had been perceived to be over-regulatory, too technical and rigid when he served as a Commissioner by virtue of being President of the Chartered Accountants of Sri Lanka.

However, sceptics found fault with the Government for originally naming Mudalige among new Commissioners, whilst Godahewa and Fernando too have received flak for their alleged conflicting roles and links with listed companies. However, all remain top professionals and are expected to act professionally.

Though the Information Department as well as Finance Secretary Dr. P.B. Jayasundera disclosed the three new appointees as Dr. Nalaka Godahewa (Chairman), ex-Central Bank Deputy Governor Priyantha Fernando and Sujeewa Mudalige as new Commissioners, the SEC website too has excluded Mudalige’s name among its Commissioners.

The current list of Commissioners as per the SEC website are Dr. Nalaka Godahewa – Chairman, D.K. Hettiarachchi (Registrar of Companies – Ex-Officio), Lolitha Abeysinghe (appointed member from private sector), Mohamed Zuraish Hifaz Hashim (appointed member from private sector), B.D.W.A. Silva (appointed member from Central Bank), Sujeewa Rajapakse (President, Chartered Accountants of Sri Lanka – Ex-Officio), Dr. Prathiba Mahanamahewa (appointed member from private sector), Sajith R. Attygalle (Deputy Secretary to the Treasury – Ex-Officio) and Priyantha Fernando (appointed member from the private sector).

The SEC as per its Act has 10 Commissioners and only nine have been named so far.

The three vacancies arose after Tilak Karunaratne (Chairman) and Sanjay Kulatunga (both appointed members from private sector) resigned recently, whilst another appointed member, P. Jayawardena, was removed or deemed to have vacated the post after his failure to attend successive meetings of the Commissioners.