COPE report reveals startling facts over CBSL transactions under previous govt

COPE report reveals startling facts over CBSL transactions under previous govt

COPE report reveals startling facts over CBSL transactions under previous govt

Written by Staff Writer

21 Aug, 2016 | 9:26 pm

The recent report of the Parliamentary Committee on Public Enterprises or COPE, makes several revelations regarding transactions at the Central Bank of Sri Lanka under the previous government.

According to the report, the CBSL had spent a sum of Rs.1,396 million in a single year, on foreign consultation.

The report on 19 public institutions examined by COPE, contains information on several transactions at the Central Bank investigated by the Committee.

The COPE report notes that in 2014, the CBSL paid a total of Rs.1,396 million to three foreign consultants. This sum amounts to 68 percent of the budget allocated for consultation and professional services in that year.

Furthermore, the report notes that while the CBSL had lent Rs.6100 million to failed financial institutions in the recent past, the bank had failed to secure the funds when these institutions were liquidated.

The report adds that while the CBSL had decided to charge Rs.317.1 million having written off the debt arrears, by September 2014 the bank had only secured Rs.18.4 million of this sum.

The COPE report also states that pay as you earn taxes to be paid by Central Bank employees, had been paid by bank funds instead.

According to the report this amounted to 128.03 million rupees in 2012, and 159.04 million rupees in 2013. COPE also raised questions regarding two buildings purchased in foreign countries, using bank funds.

A sum of six million dollars had been spent to purchasing a building in New York City in the United States. A further 122 million rupees had been spent to purchase a building in Brazil.

The Committee notes that this is a violation of the Monetary Law Act.

Latest News

Are you interested in advertising on our website or video channel
Please contact us at [email protected]