CBSL Governor provides evidence to Presidential Commission on controversial bond transactions

CBSL Governor provides evidence to Presidential Commission on controversial bond transactions

CBSL Governor provides evidence to Presidential Commission on controversial bond transactions

Written by Tharushan Fernando

22 Feb, 2017 | 7:55 pm

Providing evidence to the Presidential Commission which is investigating the controversial bond transactions today, Central Bank Governor, Dr. Indrajit Coomaraswamy said that February 27, 2015 was the first time in the Central Bank’s history that a primary dealer placed bids on behalf another primary dealer.

Governor of the Central Bank of Sri Lanka, Dr. Indrajit Coomaraswamy provided evidence to the Presidential Commission for the second today when it convened at the Ministry of Justice.

Attorneys representing Perpetual Treasuries and Deputy Central Bank Governor, P. Samarasiri who was Chairman of the Central Bank Procurement Committee and is accused of being linked to the transaction appeared at the Commission today.

Though the Attorney General opposed the representation of an Attorney for Samarasiri, it was later decided that it is allowed under the provisions of the Presidential Commission Act.

When questioned if there were instances when bonds were issued for a much higher price than informed to all Primary Dealers, the Central Bank Governor said that he is unaware of such an incident.

The attorney representing Perpetual Treasuries informed the Commission that there have been such instances, adding that his client had provided the relevant documents.

However. when the Commission requested for these documents to be presented, the attorney said that more time is needed for that.

When questioned if an internal investigation was conducted regarding the series of events surrounding the bond controversy, among the employees of the Central Bank. Dr. Coomaraswamy said no such investigation had been carried out.

While the State Counsel said that the incumbent Central Bank Governor is acting without cleaning his own house, Dr. Coomaraswamy said that even-though there is a minority of wrongdoers within the Central Bank, the staff at the bank are excellent.

The Central Bank Governor, said therefore that there is no need for his house to be cleaned.

The Presidential Commission is due to reconvene tomorrow, where the Secretary to the Ministry of Finance is scheduled to provide evidence.

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