Presidential Commission of Inquiry:Perpetual Treasuries CEO instructed to leave premises immediately

Presidential Commission of Inquiry:Perpetual Treasuries CEO instructed to leave premises immediately

Written by Keshala Dias

07 Jun, 2017 | 8:27 pm

The former Chief Dealer of the Bank of Ceylon believes that market sensitive information from the Central Bank of Sri Lanka had reached other parties prior to the controversial bond auction.

The presence of a member in the gallery who had been in attendance all morning, was brought to the attention of the bench.

When informed that he was the CEO of Perpetual Treasuries, Kasun Palisena, Justice Prasanna Jayawardena and K.T. Chitrasiri instructed Palisena to leave the premises immediately.

The police also inspected the log book to ascertain whether he had submitted his details before entering.

J. K. D. Dharmapala, the former Chief Dealer of the Bank of Ceylon said BOC had no interest or intention of investing in a 30 year bond, as they cannot determine the long term interest rates.

Several phone conversations surrounding the Bank of Ceylon bids were played at the Commission today, Wednesday, June 7.

One of the phone conversations played was between J. K. D. Dharmapala and the CEO of Perpetual Treasuries Limited, Kasun Palisena.

Palisena had requested the Bank of Ceylon to make a bid on behalf of Perpetual Treasuries for the 30-year bond that was on offer.

Dharmapala informed Palisena to send him an email with the rates before he could accommodate the request

The witness said that before receiving the email, Palisena had contacted him on his official mobile phone and asked if he had placed the bid.

Dharmapala had insisted again that an email he sent; was received moments before the auction closed.

Accordingly, Palisena had requested the BOC to make a bid of Rs. 3 billion at a rate of 12.5%.

Dharmapala disclosed that before the day of the auction, an employee of the Central Bank, identified as Mr. Sulochana, had visited the BOC to make a bid of Rs. 750,000, citing that the rates for the auction will be above the tentative coupon rate.

Dharmapala suspected that the Employees Provident Fund (EPF) had come through Perpetual Treasuries Limited to bid at the auction, as the amounts of the bid were those usually made by the EPF.

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