page_title: Nalaka Godahewa
section_title: Conviction and Allegations
hierarchical_section_title: Nalaka Godahewa / Conviction and Allegations
caption_attribution_description: English: LSE opening ceremony by CSE
context_page_description: Nalaka Godahewa is a former Chairman of the Securities Exchange Commission of Sri Lanka. Godahewa's who was then chairman of Sri Lanka Tourism was appointed as SEC Chairman in mid 2012 after two of his predecessors, Indrani Sugathadasa and Thilak Karunaratne, had to resign within 12 months as a result of a stock market crisis during April 2011 to August 2012. According to Bloomberg statistics, within the first few weeks of Godahewa's appointment as SEC head, the market bounced back from world's worst performing stock market status to the third best performing stock market status. This prompted the business newspaper Daily FT to carry a headline "From Bust to Boom". In November 2012 Godahewa presented a three-year roadmap for capital market development in Sri Lanka. which was endorsed by key industry stakeholders as a timely, positive step in the right direction.
context_section_description: In December 2015, Dr Nalaka Godahewa was arrested over an alleged financial fraud by the Police Financial Crimes Investigation Division (FCID), established after the change of government in January that year, which had launched an investigation into an over a transfer of 5 million rupees from the SEC, during his tenure. The sum of 5 million rupees was said to have been transferred to the Tharunyata Hetak Organisation for an awareness programme among rural youth on investing in the stock market. However money had been transferred to a third party bank account in the United States as payment for a Hip Hop dance group that performed at the Carlton Super Sevens Rugby Tournament in 2014.
  When Dr Nalaka Godahewa was appointed to lead SEC, he was accused by a Sri Lankan News paper of being "A Pawn Of The Stock Market Mafia". It was best answered by market performance which was reported in daily FT under the heading Capital raised via Bourse booms to record Rs. 119.4 b which reported that “ Amount raised in 2013 was up 300% over 2012 and surpasses even the 2010-09 bull run years and active 2011”. It further stated “Most analysts viewed these achievements, along with record raising of debt worth Rs. 68.3 billion and net foreign inflow of Rs. 34.1 billion, as testimony of a major turnaround for the CSE after having been bruised by various allegations in 2011 and 2012.”. By the end of 2014 the market capitalization was up 631% since the end of the war and the annual  net foreign inflaw had  exceeded Rs 97 Bn leading to a  Daily FT cover story under the title “ Capital market gathers momentum” which remarked  ” This achievement is commendable since there were many who warned that foreigners would shun the Colombo Stock Market after it was faced with allegations of manipulation among other ills”.
  In June 2013 Sri Lankan news paper, Sunday Times, published an article saying that a major investment into the country is under investigation   and  continued the story for a few weeks indirectly speculating that there is a probe on Dr Godahewa, a government official for facilitating such investment. Responding to the allegations,  Krrish Transworks,  the foreign Investment company involved,  issued a press statement pointing out there has never being any investigation on its investments into SL and all transactions of the company have always been above board. The press release also praised the Sri Lankan government officials  for their commitment and transparency and pointed out that the negative publicity with ulterior motives are in fact affecting the confidence of the investors who are looking at Sri Lanka positively. Answering a question from the press,  Mahinda Rajapaksa the President of the country, clarified on 30 July 2013,  that there has never been any complain or an investigation on matters related to Krrish group  This story which was created and sustained over several months by Sunday Times was not endorsed nor supported by any other responsible national news papers except a few politically motivated websites. In January 2014 the news paper acknowledged that there has been a formal complaint to the Press Council by SEC about its lack of media ethics. By  January 2017 even the new government, which had investigated the allegations, cleared Krish group and approval was given to proceed with the project and Sunday times it self reported same
caption: Ceremonially opening the London Stock Exchange with Sri Lanka High Commissioner to UK Dr Chris Nonis and CEO of LSE in 2014
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