CB probes about 20 of its officials over bond scams – The Island newspaper

CB probes about 20 of its officials over bond scams – The Island newspaper

By Keshala Dias

Jul 17, 2017 | 9:27 pm

The repercussions of the bond investigations have extended beyond the inquiry itself. The Island newspaper on Monday, July 17, reports that the Central Bank of Sri Lanka has started probing into the activities of twenty bank officials attached to the Employees Provident Fund, for their alleged involvement in the treasury bond scams.

The Island reports that CBSL had already sent them show-cause letters as part of the investigation.

Quoting sources, The Island says that the officials had been asked to respond by July 20, and some of those who received the letters had written back seeking additional time.

It adds that most of the officials allegedly involved in the bond scam had been transferred to other departments within the bank. Senior Assistant Director Saman Kumara has been interdicted in this connection.

It reports that some officials under a cloud have had links to Perpetual Treasuries Limited.

Meanwhile, the Colombo Stock Exchange has suspended its Director Asanga Seneviratne and enforced severe regulatory actions against four stockbrokers.

CEO of one of the brokers, Nation Lanka Equities (Pvt), Ajahn Punchihewa is also a Director of the controversial Perpetual Treasuries Limited.

According to the Ceylon Today, under Asanga Seneviratne’s chairmanship, the Nation Lanka Equities (Pvt) Ltd has failed to maintain the stockbroker minimum Capital Adequacy Ratio (CAR) requirement and minimum liquid capital requirement.

The other stock brokers, placed under the strict regulatory alert by the Colombo Stock Exchange are, S.C. Securities (Pvt) Ltd, Capital Trust Securities and TKS Securities (Pvt) Limited.