Copy of report from Commission of Inquiry on Bond issue handed over to CBSL Governor

Copy of report from Commission of Inquiry on Bond issue handed over to CBSL Governor

By Nathasha De Alwis

12 Jan, 2018 | 9:59 pm

A copy of the report of the Commission of Inquiry to Investigate, Inquire and Report on the Issuance of Treasury Bonds has been handed over to the Governor of the Central Bank of Sri Lanka.

According to the Central Bank, it has already implemented some of the recommendations therein, while measures have already been initiated to implement most of the other recommendations.

A release by the Central Bank notes that it has frozen the assets of PTL held with CBSL and has informed the Securities and Exchange Commission to take appropriate action with regard to assets of PTL coming under its purview.

CBSL says, based on continuing investigations, Perpetual Treasuries Limited are prevented from the disposal of assets, distribution of profits and making payments, without the prior approval of CBSL. The directions are in force until July 6, 2018.

The Central Bank also says it will initiate measures to carry out forensic audits carried out in relation to the issuance of treasury bonds during the 2008 to 2014 and the treasury bond auctions held in March 2016.

The release notes that in July 2017, a new primary issuance system for treasury bonds was introduced, replacing the fully auction system. CBSL adds, a new system for the issuance of treasury bills will be introduced shortly.

A new Liability Management Act is expected to come into force in early 2018 which will give flexibility for active debt management initiatives.

The Central Bank highlights that access restrictions are in place in the Public Debt Department and external visitors are required to register through a dedicated CBSL visitor registration arrangement.