CB takes unspecified actions against Perpetual Treasuries

29 November 2016 09:52 pm - 15     - {{hitsCtrl.values.hits}}


The Central Bank has completed the on-site examination on the primary dealer, Perpetual Treasuries Limited and the Monetary Board has taken 'some' actions against the company in two instances within a month, according to the Central Bank Governor Indrajit Coomaraswamy.

At the beginning of this month, Dr. Coomaraswamy told reporters that the Monetary Board had begun to study the on-site examination report on Perpetual Treasuries for appropriate regulatory actions.

“The on-site examination of Perpetual Treasuries has been completed and the Monetary Board has considered the examination and the Monetary Board took action on the November 07 and it took further action last Friday, November 25. But at this point, I am afraid I can’t give you any details of the actions that we have taken for various reasons. But I can assure you that some action has been taken (and) in due course, you will become aware of those actions,” said Dr. Coomaraswamy.

The financial markets were livid when a leaked on-site report prepared by the Central Bank on Perpetual Treasuries, on which allegations of bond auction rigging had been levelled at, revealed that the primary dealer had made thumping profits.

A week before the report was leaked, Perpetual Treasuries Limited reported extraordinary higher profits of Rs. 960 million and Rs. 5.1 billion for financial years 2014/15 and 2015/16, respectively, much higher than the profits earned by some of the mid-sized commercial banks in the country.

The company is connected to the Son-in-law of the former Central Bank Governor, Arjuna Mahendran, who was implicated in the report prepared by the Committee on Public Enterprises (COPE), the parliamentary select committee appointed to look into the controversial bond auction, of wrongdoing.

The Central Bank’s probe on the alleged bond scandal was independent but they earlier said they would study the COPE report as well as the initial findings made by the 3-member committee appointed by the Prime Minister last year to look into the scandal.

Despite the actions that are said to have been taken, Perpetual Treasuries Limited continues to operate as a primary dealer.

The Central Bank recently set up an enforcement division with the objective of prosecuting the wrongdoers more aggressively.

  Comments - 15

  • Chanel Wednesday, 30 November 2016 06:52 PM

    There's a bigger picture to this than blaming Perpetual Treasuries. !!! Nice plan to get away!

    Kaboos Wednesday, 30 November 2016 08:45 AM

    Actions to be specified for the interest of tax payers.

    Silla Wednesday, 30 November 2016 08:53 AM

    In current regime you can steal but you can't get away

    RuwanL Wednesday, 30 November 2016 09:15 AM

    Perpetual Treasuries should be suspended from the primary dealership until the investigation is completed. The Central Bank should also freeze all assets of the company as they could siphon off all their profits made on these transactions.

    Sharon Wednesday, 30 November 2016 09:33 AM

    Never thought Yahapalanaya would be this good. Awesome. via DM iOS App

    Selvyn Wednesday, 30 November 2016 09:54 AM

    This is a very good outcome from the widespread protest. It must give a significant lead to ascertain the gravity of the accusation. via DM Android App

    BuffaloaCitizen Wednesday, 30 November 2016 09:57 AM

    Why the delay in taking action on CIFL where part of the fault lies with poor monitoring standards of the Central Bank?

    Dinosaur Wednesday, 30 November 2016 10:02 AM

    Still wondering why the directors of Perpetual Treasuries not arrested yet... via DM Android App

    Suranimala Wednesday, 30 November 2016 10:34 AM

    How can we expect strong action from CB when a lot of high ups are culpable for what was going on.

    Mason Wednesday, 30 November 2016 11:02 AM

    Cannot understand the secrecy behind not divulging the action taken against Perpetual Treasuries. Sincerely hope it is not being done at the bidding of the PM, whose friend is the former CB Governor.

    Perumal Wednesday, 30 November 2016 11:11 AM

    Or awful?

    Premalal Wednesday, 30 November 2016 12:30 PM

    When "some" people rob 5 billion "some" action is taken. When a hungry school boy robbed a few coconuts the police sprang into action. "Some" country this Sri Lanka.

    Premalal Wednesday, 30 November 2016 12:33 PM

    Every citizen in this country has a sacred duty never to forget this incident because it is financial genocide. One day everyone involved in the crime and the cover up should be held accountable.

    Taxpayer Wednesday, 30 November 2016 04:11 PM

    The action taken may be.. (a) PT told not to do such things again (b) Arjuna told good you were not reappointed. via DM Android App

    Bala Wednesday, 30 November 2016 04:56 PM

    All over the world steealing happens but there must be punishment.

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