CSL governor Mahendran denies direct involvement with treasury bond issue

CSL governor Mahendran denies direct involvement with treasury bond issue

CSL governor Mahendran denies direct involvement with treasury bond issue

Written by Tharushan Fernando

03 Jul, 2015 | 10:54 pm

Governor of the Central Bank of Sri Lanka, Arjuna Mahendran on July 3 denied claims that he was directly involved with the treasury bond issue that has led to much controversy.

He added that it was not beyond the established procedure and the established procedure is that the Public Debt Department meets in the form of the tender board, and then decides on the exact quantity that must be taken up.

Mahendran said his involvement was restricted to the extent where he spoke to the superintendent of the PDD and other senior officials, and queried as to how they were going to meet the gap of Rs. 10 billion, which was needed by the following Monday and this was Friday afternoon.

He dded that up until that Friday afternoon for most of the week they had raised only Rs. 3.5 billion, making it what he called inconceivable that in the remainder of the Friday afternoon, they could raise Rs. 10 billion. He said this was his suggestion to the tender board, which then had every possibility of rejecting my advice.

Mahendran added that in fact, it was initially said that there was Rs. 20 billion available and he said shall they should take even a larger quantity, to which they said ‘no,’ because that was not feasible, because some of those bids were dummy bids. He noted that when he said 10 billion, then they said that’s more.

He also said they initially thought they will take only Rs. 2.6 billion, but when he asked them the question how they were gonna raise the Rs. 10 billion, it was not clear they were going to do it. He said there was a little bit of a quandary there and his suggestion was that they go for the whole Rs. 10 billion

News 1st queried as to whether the Governor had any stake in perpetual treasuries, to which Arjun Mahendran replied stating that this is a complete mis-statement and that he has nothing to do with that company. He said all he knows is that the sister of the former governor and his son-in-law were the directors of the company but that he has absolutely nothing to do with that company.

 

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