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Sri Lanka’s central bank extends Pan Asia primary dealer ban for six months

ECONOMYNEXT- Sri Lanka’s central bank said it will extend the ban on the primary dealership arm of Pan Asia Banking Corporation (PABC), to continue investigations into the so-called bondscam.

The six-month ban is extended with effect from February 15, and is enforced under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance.

The central bank said other operations at PABC will not be disrupted.

PABC’s primary dealership has been suspended since August 2017 for its transactions with Perpetual Treasuries Ltd during a securities fraud which caused losses to the state and the Employees’ Provident Fund, a superannuation fund of private sector worker savings.

Five forensic audits into securities fraud and other issues at the EPF have been completed, while one more is currently ongoing. (Colombo/Feb17/2020)

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