Sri Lanka was 93rd in the world when Karunaratne resigned while the market recovered up to 83rd on the rumour that Dr. Nalaka Godahewa was to take over as Chairman which he subsequently did.

Market sources claim that Sri Lanka only have to beat China to become number one in the world.

The SEC chief had been pushing investigations into stock market malpractice, including so-called pump-and-dump deals in which investors are lured into apparently cut-price equities.

Ada Derana reliably learnt that pressure was being exerted on the former politician by decision makers demanding his resignation from the top seat of the SEC.

Karunaratne’s resignation was the second in less than nine months after his predecessor, Mrs. Indrani Sugathadasa, left amid complaints from brokers that tougher regulations were hurting stock prices.

Earlier in November last, amidst a stock market crash in Colombo the then SEC Director General Malik Cader resigned and was later appointed as consultant on Capital Markets by the Finance Ministry. He was followed by Indrani Sugathadasa who also later resigned from the top slot in the SEC.

Market sources stated that the stock market which crashed during the time of Mr. Karunaratne improved upon his resignation.