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Sri Lanka remands Perpetual Treasuries bosses till Feb 16

Feb 05, 2018 18:09 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - A court in Sri Lanka has remanded key suspects in a securities scan involving Sri Lanka's central bank, where ex-Central Bank Governor Arjuna Mahendran is a wanted man, till February 16.

Arjun Aloysius, Mahendran's son-in-law who owned Perpetual Treasuries a central bank licensed primary dealer in government bonds, and the Chief Executive of the company, Kasun Palisena was arrested by criminal investigators on February 04.

Mahendran, who is a Singapore national has been asked to report to police before February 15.

A presidential commission of inquiry found that Mahendran had interfered in a bond auction and has leaked inside information to help his Perpetual Treasuries make billions of rupees in profits.

Mahendran raised a policy rate floor outside the regular monetary policy meeting and pressured a tender board to sell bonds at high prices, the inquiry found.

The inquiry also found that Perpetual Treasuries had paid central bank dealers, who were managing the country's largest pension fund to buy bonds at high prices and other state funds.

A Central Bank bond dealer was also seconded to state-run National Savings Bank. (Colombo/Feb05/2018)


 

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