CBSL Bond Issue: Monetary Board Secretary gives evidence

CBSL Bond Issue: Monetary Board Secretary gives evidence

By Keshala Dias

Mar 20, 2017 | 8:17 pm

At the  18th sitting of the Commission, Secretary of the Monetary Board H. A. Karunaratne gave evidence and revealed that the Monetary Board meeting on February 23, 2015 was presided only by then Governor Arjuna Mahendran, Treasury Secretary Dr. R. H. S. Samaratunga and Mano Ramanathan.

The draft minutes of the Monetary Board meeting revealed that a decision was reached to explore issuing thirty year treasury bonds which was later changed to ‘issue 30 year bonds’ on the final minutes which was only approved on March 2, 2015, days after the impugned treasury bond auction.

It was also revealed before the Commission that on February 27, 2015, then Governor of the Central Bank of Sri Lanka had attended the Market Operations Meeting.

Karunaratne said it was extremely unusual for a governor to attend the meeting.

At the meeting, the then Governor had instructed the Director of Domestic Operations to issue a circular to change the standing rates.

H. A. Karunaratne is to appear before the Commission, once again tomorrow, March 21.

[youtube url=”https://www.youtube.com/watch?v=E0rm4kz-b1A” width=”560″ height=”315″]