Ex-chief of Lanka's marker regulator held for misappropriation

The former chief of Sri Lanka's stock market regulator was today arrested for allegedly transferring five million rupees from the SEC to a youth body headed by one of the three sons of ex-president Mahinda Rajapaksa.
Nalaka Godahewa, the chairman of Securities and Exchange Commission (SEC) during the Rajapaksa regime, was arrested for criminal breach of trust and misappropriation of state funds, said police spokesman Ruwan Gunasekera.
Sri Lankan police's financial crimes investigation division had summoned Godahewa in connection with the alleged fraud of 5 million rupees at the SEC. He was arrested after he arrived at the SEC office here to record his statement.

It has been alleged that Godahewa was involved in illegal transfer of five million rupees from the SEC to Tharunyata Hetak, a youth organisation headed by Rajapaksa's son Namal Rajapaksa, about two years ago.
The police on Saturday arrested former deputy director of the SEC, Dhammika Perera, and Ronnie Ibrahim, director of the Carlton Sports Club, also connected to the Rajapaksa family, which conducted international rugby tournaments.
Local media have reported that the money, said to be allocated for an awareness programme on investing in stock market, was transferred to a third party bank account in the US as payment for a Hip Hop dance group that performed at the Carlton Super Sevens Rugby Tournament last year.

The FCID is also investigating several other transactions under the Rajapaksa regime, police sources said.
There have been numerous allegations of corruption against Rajapaksa. Soon after his successor, Maithripala Sirisena, took over presidency in January this year, a complaint was filed against Rajapaksa and his family members over graft claims.
Earlier this year, the Criminal Investigation Department of Sri Lanka police had summoned several officials attached to the SEC to record their statements.