Wednesday 3 May 2017

Perpetual Treasuries gained 14,845 million over bond deal up to May, 2016 : Wasantha Samarasinghe




By Shehan Chamika Silva

Testifying before the Presidential Commission on Central Bank Bond issue, based on his computation, JVP Provincial councilor Wasantha Samarasinghe alleged that Perpetual Treasuries gained a profit of Rs. 14,845 million due to the CBSL bond issues from February 27, 2015 to May 26, 2016 period.

According to his calculations it was also revealed that the Central Bank of Sri Lanka sustained a direct financial loss of Rs. 55,000 million due to the bond deals during the same period.

Mr. Samarasinghe also said as a result of taking a decision to increase the market interest up to 12.5, before the acceptance of Rs. 10.058 billion amounts of bids on February 27, had diversely affected the Country’s economy and thus a loss of more than Rs. 144,000 million had been occurred to the Government.

When questioned as to how he obtained facts to prepare his reports, Mr. Samarasinghe revealed that there were primary dealers who provided significant details regarding the subject matter.

“Identity and the revelations of those primary dealers would be very important to this commission, therefore if we take their evidence in camera (not publicly) can you reveal information about those primary dealers who gave you facts?”, the Commission asked.

“Yes, it is possible to provide information regarding Primary Dealers who supplied facts to us if their identity be protected, and I would take appropriate steps tender them before commission in due course”, Mr. Samarsinghe replied.

Mr. Nihal Fernando PC, who appeared on behalf of the Perpetual Treasuries and Counsel Chanaka de Silva who appeared for Arjun Mahendran conducted the cross examination from the witness. 

When cross examined, there were few contradiction came to light regarding the yield rates and the interest rates cited in the drafts prepared by the witness comparing to the suggestions made by the Counsel, as to consider the relevancy, and accuracy of the reports.

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