Ban on Pan Asia Bank’s primary dealership status extended

The Monetary Board of the Central Bank yesterday decided to extend the suspension on Pan Asia Banking Corporation PLC engaging in primary dealer business activities for a period of six months.

“The Monetary Board of the Central Bank of Sri Lanka on 14th February 2018, acting in terms of the Regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance, has decided to extend the suspension from carrying on the business and activities of a Primary Dealer by Pan Asia Banking Corporation PLC for a period of six months with effect from 10.00 a.m. on 15th February 2018, in order to continue the investigations being conducted by the Central Bank of Sri Lanka,” the Central Bank said.

The monetary authority stressed that the regulatory action only restricts Pan Asia Bank’s access to the primary auctions for government securities and it does not affect any of the other activities/services of the bank.

The suspension on Pan Asia Bank’s primary dealership for a six-month period was first slapped on August 15, 2017.

The Central Bank then said the regulatory action was based on the findings of an investigation carried out by them related to Pan Asia Bank’s transactions with the controversial primary dealers Perpetual Treasuries Ltd. in the government securities market.