The International Monetary Fund has expressed concern over the resignation of the head of Sri Lanka's Securities and Exchange Commission, after stock market players he was investigating complained to Mahinda Rajapakse.
Thilak Karuneratne stepped down after powerful traders sabotaged probes into corrupt practices.
"It is sad to see the SEC lose yet another strong chairperson, and in such a short period too," Koshy Mathai, Sri Lanka's IMF resident representative, told Reuters in response to an e-mail query on the resignation of Karunaratne.
"From all credible accounts, Karunaratne and his team were taking exactly the right steps to ensure that stock market participants obey the rules."
"In any country, it is only with a firm set of regulations and an active regulator to enforce them that foreign and domestic investors will have confidence that the stock market is indeed a level playing field for all and not just designed for the benefit of a select few,"
"This is an important issue for Sri Lanka, as development of the capital markets is a key priority in ensuring the country's continued rapid growth."
Karuneratne's predecessor resigned in similar circumstances last December.
Second sheriff run out of town (17 Aug 2012)
