Sri Lanka central bank blocks distribution Perpetual Treasuries assets: Ministers

ECONOMYNEXT – Sri Lanka’s central bank has placed controls on distributing assets of Perpetual Treasuries so that they can be taken back by the state in the future, ruling party legislators said.

"The Central Bank has taken stops so that assets of Perpetual Treasuries cannot be take out," Deputy Minister of Foreign Affairs, Harsha de Silva said.

He said the Central Bank has also sought advice from the Attorney General on filing a civil suit to take back assets.

Deputy Enterprise Minister Eran Wickremeratne said the government was prepared to enact new laws to confiscate any ill-gotten gains if court found the firm had committed wrong doing.

Perpetual is still a primary dealer in government securities.

Opposition parliamentarians called for the cancelling of the license during a debate on a report on alleged insider dealing by Perpetual Treasuries and rigging of auction during the time of ex-Central Bank Governor Arjuna Mahendran.

Perpetual Treasuries had later dumped the bonds on the Employees Provident Fund, parliamentarians said.

Perpetual Treasuries is connected to his son-in-law Arjuna Aloysius.

De Silva said he was among the first to raise concerns over the actions of Perpetual group in parliament as far back as 2014.

In one instance Ceylon Grain Elevators shares were pumped up from around 50 rupees to 250 and dumped on the EPF, he had said. The average cost to the EPF around 187 rupees. It subsequently fell to 36 rupees, de Silva said.  (Colobmob/Jan26/2017)





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