Sri Lanka chairman bailed over share scam

The chairman of Sri Lanka Cricket, Jayantha Dharmadasa, has been granted 100 000 rupees (US$910) bail by the commercial court of Colombo, after an alleged role in manipulating share prices

Dharmadasa was charged, along with his son and seven others, with illegally boosting the share price of Nawaloka Hospitals, in which they hold a majority stake. The case was called on Friday.

Sri Lanka's securities watchdog last year filed a case against all nine for alleged "acts to create a false and misleading appearance of an active share market."

If found guilty, the nine could face up to five years in jail, a 10 million rupee (US$100 000) fine, or both, according to Securities and Exchange Commission 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.