Tuesday March 26, 2019

Sri Lanka should probe Perpetual Treasuries, EPF, state banks: Eran

Oct 31, 2016 13:43 PM GMT+0530 | 3 Comment(s)

ECONOMYNEXT - Sri Lanka should probe Perpetual Treasuries, the Central Bank, the Employees Provident Find and state banks to break a ring of corruption, Deputy Enterprise Minister Eran Wickramaratne said.

"We have to clean up the system," Wickamaratne told reporters in Colombo.

His comments came in the wake of a parliamentary panel finding ex-Central Bank Governor Arjuna Mahendran responsible for irregular auctions where the firm connected to his son-in-law Arjuna Alloysius made around Rs10 billion in profits over two years.

The report said any losses to the state should be recovered.

Wickramaratne said the parliament's Committee on Public Enterprises (COPE) report was a triumph for democracy.

Unlike in the ousted Rajapaksa regime, the parliamentary system of oversight was now working, he said.

"Our administration made the Chairman of COPE an opposition member," Wickramaratne said. "Under the previous administration, it was a government member. In fact, I requested to be removed from the COPE when I was made minister of state enterprises."

There was a public outcry amid reports that Perpetual Treasuries had dumped long bonds bought at high yields (low prices) from rigged government auctions on the EPF.

It is alleged that cosy relationships were established with dealers who enriched themselves through securities purchases for years.

During the Rajapaksa regime, the EPF was reputed as a dumping ground for stocks and earned the accolade of being the 'buyer of last resort', an allusion to the Central Bank's role of being the 'lender of last resort' for troubled banks. EPF is managed by the Central Bank.

Market players say the same people involved in stock dumping on both sides of the contract were also involved in the bonds.



  1. Godaya October 31, 10:08 AM

    COPE is working because it was appointed during the Yahapaalana honeymoon where they have to show neutrality by appointing a third party member as chairman. UNP is still trying every tactic to sweep Bond scam under the carpet. To say COPE report is a triumph for democracy is true. But taking the credit for it by the same UNP is like saying this side is better when the boat capsized.

  2. Tax Payer 2 October 31, 07:51 AM

    Eran, You were a senior banker and CEO of one too.Don't you understand the day light robbery that has taken place. Why are you keeping on repeating about MR's misdeeds still. Why don't you say what you have to say about Arjun's and Arjuna's great Bank Robbery?

  3. Dickie Bird October 31, 05:47 AM

    Unlike in the ousted Rajapaksa regime, the parliamentary system of oversight was now working, he said.- EranTo begin your statement,your were right. What is not correct to end with Rajapakshes bashing.Do not mix up politics with actual happenings.This is not what masses expected from RW/MS Govt when they placed their faith n voted.Eran, stop fooling the masses with such rajapakshe rhetorics. Masses are no fools when it comes to the Bond scam. This is a disgrace for all of you. people hv lost trust in Ranil UNP. U too will be treated the same way if U continue Rajapakshe bashing.Harsha/Sujeewa hv lost their credibilities going for such cheap politics. R U too going down the same path ?Masses wanted a clean-up an honest Govt

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