The CSE has started conducting virtual workshops to create awareness of regulated short selling and stock borrowing and lending.
The highest risks were identified among informal money remitters, real estate agents, banks and finance companies.
SEC chairman asked brokerage firms to improve their understanding of compliance requirements and invest more in technology and infrastructure.
The Colombo Stock Exchange said the new initiatives will create a more dynamic and transparent trading ecosystem and offer more flexibility to investors.
The revisions will help to build investor confidence and better align corporate governance practices in Sri Lanka with international standards.
Every legal professional is required to appoint a Compliance Officer to ensure compliance, and submit STRs to the FIU.
Aggressive sales practices, abusive debt recovery practices, and excessive fees and interest charges are prohibited.
Travellers from India will be able to directly use INR in Sri Lanka. Trade settlements between the two countries can also occur in INR.
A separate governing board will be formed in addition to the monetary policy board to improve bank oversight and reduce conflicts of interest.
The government expects the country's domestic debt restructuring process gets to conclude during the five-day market closure period.