Lanka Rating Agency, one of the island republic of Sri Lanka's three ratings agencies, has lost its licence.

It was in March that the SEC originally took steps to restrain Lanka from providing new ratings. It cited "structural issues pertaining to the company." It is not entitled to carry out the business of assessing and evaluating or reviewing the credit-worthiness of any issue of listed securities or securities to be listed with regard to the issuers' ability to perform any obligations.

The SEC issues certificates of registration that last for a year. LRA has not forwarded a duly completed and therefore valid application for renewal.

The relevant SEC press release also speaks darkly about how the SEC is obliged to satisfy itself that a market intermediary (which LRA was) has at no time been guilty of contravening the SEC Act No 36 of 1987 (as amended). The communiqué does not say whether LRA has actually done so.