The Employees’ Provident Fund (EPF) has received Rs. 231 million in compensation for losses incurred due to market manipulation in the purchase of Laugfs Gas PLC shares in October 2011. The Securities and Exchange Commission (SEC) announced that these funds have been credited to both the EPF and the SEC’s Compensation Fund.
The SEC had previously taken legal action against W.K.H. Wegapitiya, U.K. Tilak N. de Silva, and T.I. Hulangamuwa, accusing them of conspiring to commit market manipulation and executing such manipulations, under the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987.
Following court proceedings, the defendants applied for the SEC to consider compounding the offences. The SEC agreed to this application, taking into account the settlement of the EPF’s losses, ongoing litigation, and the defendants’ lack of previous convictions. The accused were required to pay Rs. 6.6 million to the SEC’s Compensation Fund as part of the settlement.
The payments were officially made to the EPF and SEC on July 19, 2024.