Business
SEC urges Compliance Officers to play a more effective role
As part of their continuing efforts to strengthen market standards and investor confidence, officials of the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) recently met with Compliance Officers of all categories of Market Intermediaries. The meeting served as a valuable opportunity to engage in a constructive dialogue on regulatory matters and industry best practices.
Emphasizing the importance of the compliance function, the SEC Chairman, Faizal Salieh, stated that the SEC regards the Compliance Officer as a Key Management Person who is empowered to act with independence, authority and responsibility. The appointment of a Compliance Officer is a prerequisite for granting or renewing licenses to Market Intermediaries and to comply with SEC requirements. Compliance Officers must provide a sworn affidavit declaring their adherence to the fit and proper criteria established by the SEC.
He further stated that, in the event the Compliance Officer resigns, it is imperative that the Market Intermediary must promptly inform the SEC, and select a successor with prior SEC approval. The Chairman stated that the SEC will investigate the reasons behind a resignation, particularly focusing on any internal interference or influences within the compliance function.
Referring to the regulatory obligations outlined in the SEC Rules applicable to Market Intermediaries, the SEC Chairman asserted that the SEC mandates that Compliance Officers must hold full-time positions due to the substantial responsibilities associated with their role.
Speaking on the reporting lines of the Compliance Officer, Salieh, emphasised that the compliance function should be independent of the business operations of the Market Intermediary and all compliance related matters should be reported by the Compliance Officer directly to the Board of Directors or a Board sub-committee dealing with risk, such as the Audit or Risk Committee.
The discussion also focused on the need for all Market Intermediaries to ensure compliance with the SEC Act and the applicable Rules. These Rules mandate the creation of an internal compliance manual for directors and employees, incorporating the specific content outlined in the relevant schedule to the Rules. It was stressed that before developing this manual, Market Intermediaries should have a Board-approved compliance policy to guide the Compliance Officer in implementing the compliance process. The Chairman urged Compliance Officers to ensure that there is a Board-approved compliance policy and discussed key areas within the minimum content of the compliance manual, including conflicts of interest, corporate governance, and risk management with a view to elevating market standards and making the market more attractive to investors.
The Chairman also stressed the need for Compliance Officers to provide prior written approval for all personal account trade transactions of other employees, in order that these transactions do not harm other clients’ interests. Referring to the complaints received by the SEC, the need to have an effective complaint handling mechanism at the Market Intermediary level to proactively address client complaints was also emphasized.
Speaking on the critical role Market Intermediaries play to protect the financial system and the wider community from criminal activities, Salieh stressed the importance of adhering to the regulatory framework set by the Financial Intelligence Unit of Sri Lanka (FIU) with regard to Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) regulations and Customer Due Diligence (CDD) requirements.
The inaugural Sri Lanka Fintech Summit 2025 concluded with industry leaders and regulators establishing two critical national priorities: a bold target to reduce physical cash usage and a push for consolidated regulatory oversight.
In a key decision, participants set a clear three-year goal to lower the ratio of cash in circulation to GDP from 4.5% to 3.5%. The strategy will focus on digitizing high-cash sectors like transport, utilities, and SME payments, while expanding digital access through post offices and cooperatives.
For the long-term health of the ecosystem, stakeholders agreed to lobby for the creation of a single, unified regulatory authority dedicated to fintech oversight. This aims to streamline approvals and provide clearer guidance for innovators.
“Our members needed to leave with concrete action points,” said Channa de Silva, Chairman of the Fintech Forum, Sri Lanka. The summit, designed as a series of closed-door roundtables with regulators including the Central Bank, produced actionable frameworks. “It was about defining KPIs, setting targets, and giving the industry a shared direction,” de Silva explained.
The outcomes signal a concerted shift from discussion to execution, aiming to build a more inclusive, efficient, and secure digital financial economy for Sri Lanka.
By Sanath Nanayakkare ✍️
A new force in Sri Lanka’s food industry, Kukus Group, is gaining momentum with a clear vision to deliver authentic cuisine, high hygiene standards, and affordability. Founded by young entrepreneurs Nadeera Senanayaka, Lakmini Gurusinghe, and Randila Gunasinghe, the group has successfully launched its pilot outlet and is now preparing for a significant nationwide expansion.
The inaugural in Kotte has served as a successful proof of concept. Operating for five months, this modern street-food outlet has garnered a strong customer response, confirming market demand and providing the confidence to fund the group’s ambitious growth strategy.
The inaugural in Kotte
“The positive reception has been overwhelming and has solidified our plans,” said Lakmini Gurusinghe and Randila Gunasinghe. “Our Kotte outlet is the operational model we will replicate – ensuring consistent quality, disciplined operations, and excellent service across all future locations.”
The group’s expansion strategy is built on three distinct thematic brands:
Kukus Street: Targeting young urban customers, these outlets offer a vibrant, casual dining experience with a menu of Sri Lankan rice and curry, kottu, snacks, and BBQ, with most meals priced under Rs. 1,500. Services include dine-in, takeaway, and delivery.
Kukus Beach: Planned for coastal areas, beginning in the South, this concept will feature an urban-style beach restaurant and pub designed for relaxed social dining.
Kukus Bioscope: Celebrating Sri Lanka’s cinematic heritage, this dedicated restaurant concept will create a nostalgic cultural space inspired by the golden eras of Sinhala cinema, with the first outlet slated for Colombo.
The immediate plan includes transforming the flagship Kotte location into Kukus Pub & Bar, pending regulatory approvals. The long-term vision is to develop 18 outlets nationwide: 10 Kukus Street locations, 5 Kukus Beach venues, and 3 Kukus Bioscope establishments.
“Kukus Group is more than a hospitality brand; it’s a celebration of Sri Lankan flavors and culture,” the founders concluded. “Our mission is to build trusted, recognizable brands that connect deeply with communities and offer lasting cultural value alongside authentic cuisine. We are dynamic and excited to proceed with this strategic expansion,” they said.
By Sanath Nanayakkare
Fcode Labs marked its seventh anniversary by hosting its annual Awards Night 2025 at Waters Edge, celebrating team achievements and reinforcing its organizational values.
The event featured keynote addresses from Co-Founders & CEOs Buddhishan Manamperi and Tharindu Malawaraarachchi, who reflected on the company’s annual progress and future strategy. Chief Operating Officer Pamaljith Harshapriya outlined operational priorities for the next phase of growth.
Awards were presented across three key categories. Prabhanu Gunaweera and Dushan Pramod received Customer Excellence awards for partner collaboration. Performance Excellence awards were granted to Munsira Mansoor, Thusara Wanigathunga, Thushan De Silva, Adithya Narasinghe, Avantha Dissanayake, Amanda Janmaweera, Sithika Guruge, and Sandali Gunawardena. The Value-Based Behaviour awards were given to Thilina Hewagama, Udara Sembukuttiarachchi, and Kavindu Dhananjaya for exemplifying company values.
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