Intellectuals express disappointment and concern as Budget 2017 fails to focus on CBSL Bond Issue

Intellectuals express disappointment and concern as Budget 2017 fails to focus on CBSL Bond Issue

Intellectuals express disappointment and concern as Budget 2017 fails to focus on CBSL Bond Issue

Written by Tharushan Fernando

11 Nov, 2016 | 9:03 pm

 Intellectuals have expressed their displeasure as the 2017 Budget failed to focus on the malpractices followed in transactions surrounding the Central Bank.

A primary dealer in the markets, Perpetual Treasuries said to be owned by the son-in-law of Arjun Mahendran is one party that is facing allegations over the treasury bond scam.

Following the bond issue, the firm saw a staggering increase in its profits and it was also revealed that it was using the names of separate businesses to make purchases in the share market.

One significant revelation was that a company named “Thurston Investments Limited” was operating from the same address as Perpetual Treasuries and Perpetual Equities.

Thurston Investment Limited is the third shareholder of the The Housing Development Finance Corporation Bank of Sri Lanka also known as HDFC.

As per the banks share listing published on September 30, Thurston Investments Limited owns 14.15 percent of the shares of HDFC.

In such a backdrop, the budget had proposed to commence a housing bank by merging HDFC and the State Mortgage and Investment Bank.

As per the budget proposal, the government is to allocate Rs.7.5 billion  to commence this bank.


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