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Central Bank issued Rs.14.2 bn to SriLankan in 2012: Commission

19 February 2019 11:34 am - 0     - {{hitsCtrl.values.hits}}

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It was revealed several times at the SriLankan Airlines Presidential Commission that in 2012, the Central Bank had issued Rs. 14.2 billion worth Treasury Bonds to SriLankan Airlines using the direct placement method without publishing an early gazette notification according to the RSSO.

Central Bank Legal and Compliance Department Acting Director K.G.P. Sirikumara told the Commission yesterday that an early gazette should be published according to the Registered Stock and Security Ordinance (RSSO) prior to issuing Treasury Bonds.

Mr. Sirikumara also informed the Commission that he had given written instructions in 2007 to issue Treasury Bonds by using the direct placement method to assist certain state institutions and also informed the direct placement of Treasury Bonds were some kind of an administrative arrangement done by the CBSL considering the situation of that particular state institution.

“In other cases we usually informed CBSL officers to practice the law rather than providing prominence only to the practices followed by them,” he informed the Commission.

He also said that the direct placement method which he had instructed to use in 2007 was a particular situation which would not harm the government and he has provided his observations to that certain matter. (Yoshitha Perera)

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