ECONOMYNEXT – Sri Lanka’s central bank said it was suspending Perpetual Treasuries, which was involved in the island’s biggest securities scam for further six months from January 05.
Perpetual Treasuries is connected to Arjun Aloysius, son-in-law of ex-Central Bank Governor Arjuna Mahendran.
A Presidential commission of inquiry which probed rigged bond auctions that benefitted Perpetual Treasuries and siphoning of funds from state managed funds by dumping bonds, sometimes through intermediaries and dealers, has recommended criminal action.
The commission also said profits made by Perpetual Treasuries should be clawed back.
The central bank said the suspension was extended to continue its own investigations into the dealer. (Colombo/Jan05/2018)