Monday April 23, 2018


Sri Lanka bond probe says former CB governor leaked info, recommends legal action against Ravi

Jan 03, 2018 18:45 PM GMT+0530 | 4 Comment(s)

  

ECONOMYNEXT – Sri Lanka's President Maithripala Sirisena said a Presidential Commission which probed Sri Lanka’s biggest securities scam has held former central bank governor Arjuna Mahendren responsible for leaking market sensitive information and also recommended legal action against former finance minister Ravi Karunanayake.

Making a special statement to media on the Presidential Bond Commission report, Sirisena said they had recommended legal action against all those responsible for the scam.

The commission of inquiry probed a series of rigged bond auctions conducted by the central bank under then Governor Arjuna Mahendran where his son-in-law's company Perpetual Treasuries bought securities at low prices (high yields).

“The report stated that the Perpetual Treasuries Limited has made profits through illegal means with the involvement of Mr Arjuna Mahendran, Bank officials and some outside individuals,” Sirisena said.

In the auction held on 27th February 2015 alone the Perpetual Treasuries Limited has made a minimum gain of over Rs 688 million, Sirisena said.

“Perpetual Treasuries Limited has made undue profit of Rs 11,145 millions in the secondary market. In this Employees Provident Fund and other government institutions had lost more than Rs 8.5 billion.”

Sirisena said the Commission report has held former Finance Minister Ravi Karunanayake responsible for the payment of rent for his penthouse apartment belonging to the Aloysius family and their Walt and Rowe Company.

It recommended  legal action against Karunanayake under the penal codes for giving false evidence at the Commission.

(COLOMBO, January 03, 2018)