CBSL cancels PABC primary dealer licence

Pan Asia Banking Corporation PLC (PABC) has announced that the Governing Board of the Central Bank of Sri Lanka (CBSL) has formally cancelled its primary dealer licence, effective from October 23, 2025. 

The bank disclosed the regulatory decision in a filing to the Colombo Stock Exchange on Friday, noting that the official communication from the regulator was received on January 27, 2026. This decision brings a permanent end to the licence which had been suspended for over eight years, starting from August 15, 2017.

The cancellation serves as the regulatory conclusion to investigations into the bank’s role in the controversial treasury bond scam. The initial suspension in 2017 was driven by findings that the bank acted as an intermediary for Perpetual Treasuries Ltd in a series of “pump-and-dump” trades. These complex transactions involved routing government securities from Perpetual Treasuries through the bank to the Employees’ Provident Fund at artificially inflated prices. This mechanism allowed the bonds to be “dumped” on the state-managed fund at above-market rates, enabling third parties to skim significant profits while causing reputed losses to the state.

Despite the finality of the licence cancellation, Pan Asia Bank has assured the stakeholders that the move will not impact its core operations. In its statement to the exchange, the bank clarified that the regulatory action would have no bearing on its regular banking activities or its continued ability to trade in the secondary market. The matter was formally tabled at a board meeting held on January 29, 2026.