Sri Lanka cricket chief questioned over share scam

CRICKET: COLOMBO, Feb 10 - Sri Lanka's securities watchdog Friday questioned the country's cricket chief Jayantha Dharmadasa over the alleged manipulation of share prices.

Dharmadasa, who heads Sri Lanka Cricket, his son and seven others are being charged by the securities regulator for illegally boosting the share price of Nawaloka Hospitals, in which they hold a majority stake.

Jayantha Dharmadasa and his son U. H. Dharmadasa were questioned at length by Securities and Exchange Commission (SEC) officials over their involvement, stock market sources said.

"The father and son were given an opportunity to present their side of the story to the SEC," a source close to the probe said.

The SEC filed a case against all nine for allegedly committing "acts to create a false and misleading appearance of an active share market and the offences of aiding and abetting and conspiracy in the commission of these offences."

If found guilty, the nine could face up to five years in jail, a 10 million rupee (100,000 dollar) fine, or both, according to SEC rules.

Dharmadasa's family controls the Nawaloka Group, which has investments in construction, plastic, timber, trading and heavy machinery.

The family took the hospital unit public in 2004.

Nawaloka, Sri Lanka's second-largest private hospital, raised 300 million rupees by selling a 30 percent stake to the public.