SEC Banned front runner; alleged Manipulator Dinal Wijemanne’s friend Ravi Karunanayake sends a letter to COPE?

Ravi Karunanayake

The Colombo District, United National Party (UNP) MP -Sandresh Ravindra Karunanayake (Ravi K) has recently send a letter to Chairman, Committee On Public Enterprises (COPE) requesting him to summon officials of the Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) over the fiasco in capital markets and boost investor confidence.

Investors praise at least one politician has woken up and at least written a letter thinking it would boost investor confidence. The Government, the Opposition and the Stock Brokers have not taken any significant steps to boost investor confidence here and abroad. The Government and Opposition politicians do not understand the Capital Markets and do not bother about it as it does not concern their electorates. They do also not know the importance of the Capital markets although it depicts the health of the economy.

The Opposition 'Big Talk' has successfully scared off all Government Institutions to stop even all legitimate purchases in the Stock Market when most company share prices have fallen over 50% from February 2011 to date. In fact the Opposition big talk has created over hundred thousand small investors cursing the Opposition while has been compounding losses for these institutions which have funds of the public.

The only good outcome of Opposition big talk is that the Government may at least now think of checking the theoretical media leaking officials of the SEC who are inefficient to take to task the "Pumpers & Dumpers" affiliated to the Government and the Opposition while some of the Stock Brokers  aiding and abetting manipulators also will be put into place.

However, the public laugh that the boosting investor confidence effort should not be commenced by Ravi K who does not know how to boost the confidence of investors. 

CSE Leaks learns that Late Lalith Athulathmudali’s that time proxy/nominee investor (it is a popular famous secret in cocktail circles) Ravi Karunanayake nourished Dinal Wijemanne at Ministry of Commerce and Consumer Affairs from 2001 under the United National Party Regime as the Director, Investments and Projects at the Ministry of Commerce and Consumer Affairs

Further, it is known in media circles and business  circles that the SEC Banned manipulator -Dinal Wijemanne CEO/ Director of Taprobane Securities was one time nourished as a top official under Ministry of Commerce and Consumer Affairs when Ravi Karunanayake was Minister of Commerce and Consumer Affairs of the Ranil Wickramasinghe led UNP Government in 2001. 

A report in Pakistan’s media outlines in 2002 that when a Pakistan delegation was invited to INTRAD 2002 exhibition organized by the National Chamber of Commerce & Industry in Sri Lanka Pakistani delegation had detailed discussions with a group of Sri Lankans led by Ravi Karunanayake and Prof. G.L. Pieris where Dinal Wijemanne represented Ministry of Commerce and Consumer Affairs as Director, Investments and Projects. 

Go to Link : http://majydaziz.blogspot.com/2011/05/at-saarcs-1985-inaugural-summit-in.html

In another development in 2001 an ‘Expression of Interest (EOI)’ advertisement published behalf of ‘Mahapola Higher Education Scholarship Trust Fund’ in the Sunday Observer outlines that for any clarification to contact Mr. Dinal Wijemanne, Director - Investment and Projects, Ministry of Commerce & Consumer Affairs on telephone number 94-1-312152 or email address dinal@commerce.gov.lk . 

Go to Link: 

http://www.sundayobserver.lk/2001/pix/ad_so-mahapola.html & http://www.dailynews.lk/2001/pix/ad_cdn-mahapola.html 

It was during 2001-2004 UNP Regime that Sri Lanka Insurance Corporation (SLIC) and Lanka Marine Services Limited (LMSL) was privatised and PERC was under the guidance of UNP Minister Milinda Moragoda where Dr. P.B. Jayasundera headed it as the Chairman and at the same era Dinal Wijemanne also held the position of Senior Manager of the Public Enterprise Reform Commission (PERC).

That is why although Ravi Karunanayake and so called Independent Economists is not mentioning about Dinal Wijemanne in their ‘Big Talks’ in television channels and parliament” a top UNP source told CSE Leaks.

Accordingly although an Independent Economist onetime who always lost money by investing in the Stock market (according to DFCC sources who knew  him at the time he was a small banker at DFCC)  gave a ‘Big Speech about the ‘Controversial NSB-TFC Doomed Deal’ at the parliament recently and he was cautious enough to protect the  SEC banned stock broker Dinal Wijemanne’s  name throughout without mentioning Wijemanne's name. 

"Independent Economist mentioned about Dinal Wijemanne's boss - the Bond King turned Ajith Lasantha Devasurendra may be without knowing the small financial assistance by Devasurendra to United National Party (UNP) led by the Opposition Leader and UNP Leader Ranil Wickramasinghe prior to the 2005 November Presidential Elections" another UNP insider revealed to CSE Leaks.

Extract from Ravi K's letter to COPE- "Over the last five to six months the country’s economy has been traversing through some turbulent times. If these trying times are a result of uncontrollable factors and world economic meltdown being one of there we can console ourselves and accept it. However, if it is owing to arrogance, ignorance, corruption and manipulative practices where insider trading is being pursued by a few at the expense of the majority we need to expose and eliminate these white collar fraudsters.

You as the Chairman have been alive and responsive to our requests to act on institutions such as Central Bank, SriLankan Airlines, Ports Authority, Ceylon Electricity Board, National Savings Bank, Lankaputhra Bank, EPF and Bank of Ceylon, etc.

The recent development of the National Savings Bank and The Finance Company Ltd. share purchase transaction reversal has led to exposing many problems, this only being the ‘tip of the iceberg’.

We also should bear in mind and recall with respect Indrani Sugathadasa, who a couple of months ago tendered her resignation in disgust trying to ameliorate the wrongs that were happening in the Securities and Stock Exchange. Considering her close political affiliation, it is nothing but right to commend her bold act of protecting her good name and also honouring the dignity of high office by resigning to prove a point.

Therefore, let us not lose this opportunity to take cognisance of the fact of her resignation and summon the Securities Exchange, the Stock Exchange, the former Chairperson and the present Chairman, the former Director General, the present Directors General and the senior officers of both institutions before COPE for immediate investigation.

I would look forward to your usual prompt and favourable response in order to restore confidence among the Sri Lankan foreign investors and the citizens of our country.”

Sri Lanka Gonibilla Price Band creator- Royalist - Former DFCC Fund Manager now SEC Surveillance Director Chandu Epitawala creates a 'Market Devastating' Press Release?

Chandu Epitawala - Then

Industry sources outline that twice best performed Second best capital market in the world till early 2011 Colombo Stock Exchange started to collapse since August 2010 when former fund manager of DFCC Bank and Namal Asset Management, Chandu Epitawala who is the present Director Surveillance of Securities and Exchange Commission submitted a paper considering to put a 10% 'Price Band' or 'Gonibilla Theory' for rising Colombo Stocks and when Sri Lanka’s tall thin accountant type Sujeewa Mudalige of Pricewaterhouse Coopers (PWC) provided his expertise to hamper the broker provided credit for retailers.

According to SEC insiders more recently the same Gonibilla Price Band Creator Chandu Epitwala had done and created a stock market devastating sentence by writing in a SEC Press Release that said 'There is a General Rule Change which will Prohibit employees and Directors of all market intermediaries to trade (buy shares and sell within six months of buying) except in the case of IPO purchases. Investments (over 6 months) are allowed.

Chandu Epitawala - Now

This in turn will affect the stock trading done by Sri Lanka's top billionaires, stock traders and investors as they are board of directors of many market intermediaries.

It is learnt from a Press advertisement of SEC that several licensed Commercial Bank's including Commercial Bank PLC (COMB), National Development Bank PLC (NDB), Hatton National Bank PLC (HNB), Sampath Bank PLC (SAMP), Bank of Ceylon (BOC), margin trading providers such as Seylan Bank PLC (SEYB), Pan Asia Banking Corporation (PABC), Divasa Finance, Asia Asset Finance and Ceylon Investment PLC (CINV) and Ceylon Guardian Investment Trust PLC GUAR) are also falling in to the category of 'Market Intermediaries'  where some top billionaires of the island nation who trade daily on stock exchange are on the Director Boards.

  

According to market sources Chandu Epitawala's 'Sentencing' will affect some of the top Sri Lankan Billionaires and stock market traders in Sri Lanka including Mano Selvanathan, Hari Selvanathan, Ajitha De Zoysa, Alex Lovell, Ashok Pathirage, Bond King Ajith Devasurendra, CSE Chairman Krishan Balendra, Harry Jayawardena, Dilith Jayaweera, Nimal Perera, Dammika Perera, Ishara Nanyakkara, and Dr. Sena Yaddehige.

"This definition will let all these billionaires to hold on to their equities for more than six months" top stock market analysts said.

Chandu Epitawala Exposed!

Passed out from Royal College in 1979 and went Switzerland to pursue languages and a course in Hotel Management. Later in 1989 went US to pursue University education. Obtained bachelors degree from Hawaii Pacific University and MBA from University of Texas at Arlington. On his return in 1995, Chandu Epitawala joined a fund management firm and later got seconded to DFCC bank. In 2000 went to Seychelles to manage funds for a wealthy individual. On second return in 2002, joined Public Enterprises Reforms Commission (PERC) the privatizing arm of the government. After four years there, in 2005 joined the Securities and Exchange Commission where he work at present devastated the stock market by writing a 'Concept Paper on 10% Price Band which he submitted to SEC' according to insiders.

Sri Lanka’s Financial Market Watchdog discusses that LOLC may cause another financial industry crash?

LOLC burdened with over Rs.65 billion (US $ 520 million) debt-Analysts

Sri Lanka’s financial market watchdog lead by the Board that is handling monetary matters had discussed a crucial issue that may cause another financial industry downturn in the country which would be a result of former veteran lady banker Rohini Nanayakkara and vehicle dealer Ishara Nanayakkara lead Lanka Orix Leasing Company which has an alliance with the Japanese Financial giant Orix Corporation, CSE Leaks learns from inside sources of the financial industry.

Driving forces of LOLC

Accordingly sources outline that several transactions that had happened among LOLC group lead fame and new buyouts had caused LOLC financials weaker and weaker leading the group in to a debt portfolio valued to the tune of Rs.65 billion or nearly US $ 520 million.

Further financial watchdogs had also opined that it may effect on another financial industry crash that is more problematic than the Ceylinco lead Golden Key fiasco and other related subsidiaries that started with a Rs.26 billion financial fraud in an unregistered public deposit canvassing credit card entity.

Buckle Tight Regulator to be a Soul in CSE History: No More at Watch Dog’s House on All Souls Day

Sri Lanka’s No.1 Leaks site wants to inform readers exclusively with confirmed sources that with immediate effect Buckle Tight Regulator is out from his seat at the Market Watch Dog’s House. "He has submitted his resignation from office today after a Commission meeting" market source told CSE Leaks.

Investors in Sri Lanka view the ‘Buckle Tight’ as the person who brought in the ‘White Flag Incident’ to Colombo Bourse when he first gave a nod to impose a ‘Price band’ to Colombo’s rising stocks. That time some market analysts were in the opinion that Sri Lanka should follow Hong Kong rule of shooting Gunny Bags with the people who were responsible for leading stock market to a crash by ‘Over-regulation.’

With news out in York Street and Janadhipathi Mawatha and Fourth Floor at World Trade Centre Trading Floor market indices shoot up by 127 points (2%) before 1 p.m. on 2 November 2011.

Citrus Leisure PLC (REEF) to come up with couple of IPOs?

Citrus Leisure flagship Hotel at Hikkaduwa, Sri Lanka

After undergoing a management change in 2010, former Hotel Reefcomber PLC now Citrus Leisure (REEF) will come up with couple of IPOs on coming months to raise funds to their newest to ventures, an analyst told CSE Leaks.

Citrus Leisure in the last quarter of 2010 bought two new lands at Kalpitiya and Waskaduwa in a bid to build two new hotels with a view becoming a post war bullish fast growing hotel chain in the country.

“The IPOs might come in February” the analyst told CSE Leaks.

Citrus Leisure had earlier purchased 78 acres of land, known as Santhoduwa-Kalpitiya, to construct a four star resort in Kalpitiya in Sri Lanka. The proposed resort will feature 150 rooms and 28 water front villas. The water front villas will be constructed facing a 50 meter-wide waterway which cuts through the land and connects at the end to the sea. Murad Ismail, a Sri Lankan architect, has designed the resort.

The water villas will feature individual gondolas providing the occupants access to the sea. The villas will be made available to local and foreign high net worth individuals on a 99-year lease basis.

The ‘Santhoduwa-Kalpitiya’ site is ideally placed in close proximity to the whale- and dolphin-watching sites in the seas off Kalpitiya and the magnificent Wilpattu National Park, home to the elephant and the elusive Ceylon leopard.

Citrus Leisure will operate the villas as part of the hotel with the concurrence of their owners. The company has spent approximately Rs.122.18 million (US $1.1 million) for land acquisition.

The purchase is Citrus' second major acquisition. Earlier, the company had acquired a 7.2 acre beach property in Waskaduwa and it will commence construction work on the site in early 2011. The proposed scheme would be a 150-room, four-star property.

Sri Lanka’s home grown advertising giant Triad and its creative duo Dilith Jayaweera and Varuni Amunugama Fernando bought a majority stake in Reefcomber through Emagewise Ltd., a private venture of Triad Advertising in 2010 and rebranded the company as Citrus Leisure PLC.

Why GREG drastically fell, was it to facilitate Nimal Perera, or Did Nimal Perera sell his GREG shares?

Nimal Perera sipping some Wine
at a High Exclusive Corporate Event

High Exclusive sources close to Colombo Stock Exchange revealed CSE Leaks that High net worth investor Nimal Perera had sold his GREG or famous Environmental Resources Investment (ERI) PLC shares before the week ended 23 January 2011 as the share shot up high again to above Rs.100 and along with slight appreciations in the warrants.

However, as at 30 September 2010, according to Quarterly report of ERI PLC Nimal Perera had 2.34 million GREG shares which amounted to 0.75% of the company.

Some sources say that he has sold this stake to put money for Vallibel One IPO where he is also on Director board; However it could be now derived according to our analysis may be that Nimal Perera had applied for a few more shares of Vallibel One to profit from CSE when it is listed and since he would have applied by a Bank Guarantee he would have sold his GREG shares to partly settle the money for Bank Guarantee’s Bank Charges.