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Presidential commission for Sri Lanka bondscam

ECONOMYNEXT – Sri Lanka’s President Maithripala Sirisena will appoint a commission to inquire in to a securities fraud in government bonds and recommend remedial actions.

The so-called bondscam involves alleged rigging of bond auctions and insider dealing where Perpetual Treasures, a firm connected to the family of ex-Central Bank Governor Arjuna Mahendran, benefitted.

"I will appoint a Special Presidential Commission of Inquiry this week to investigate the Central Bank bond issue and recommend action," President Maithripala Sirisena said in a late night tweet on Sunday.

The action comes as Sri Lanka’s Parliament is set to debate a report produced by its own committee on public enterprises, which recommended legal action against the perpetrators.

So far no action has been taken.

However, the newly appointed Central Bank Governor Indrajit Coomaraswamy has streamlined bond auctions, making them more transparent and market based. Some undisclosed strictures have also been placed on Perpetual Treasuries. (Colombo/Jan23/2016)

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