Sri Lanka Central bank suspends four officers over alleged bond irregularities
Sri Lanka’s central bank said it has suspended four officers and taken disciplinary action against several others following alleged irregularities in a 2015 government bond auction.
In a statement Thursday night, the monetary authority also said it has initiated several legislative changes aimed at preventing irregularities arising in connection with future bond issues.
Last week, President Maithripala Sirisena said a commission investigating the 2015 bond sales has recommended legal action against the finance minister and the central bank governor at the time.
The Central Bank of Sri Lanka statement said it has taken measures to improve the management and control of public debt and the government pension fund, and is studying the commission’s recommendations.
“The central bank has already implemented some of the recommendations therein, while measures have already been initiated to implement most of the other recommendations,” it said.
“The Monetary Board has consulted the Attorney General, as appropriate, in the actions it has taken.”
In the 2015 auction, more than half of the bonds were sold to Perpetual Treasuries Ltd, a subsidiary of a company owned by the son-in-law of then-central bank governor Arjuna Mahendran.
Sirisena said the presidential commission of inquiry concluded that Perpetual Treasuries made profits through illegal means, and it blamed the bank governor and other officials.
Mahendran, his son-in law and Perpetual Treasuries have denied any wrongdoing.
In its statement, the central bank also said that it will initiate measures to carry out forensic audits on the issuance of Treasury bonds during the 2008 to 2014 and the Treasury bond auctions held in March 2016, as recommended by the commission.
Several legislators were injured in a fistfight on Wednesday that broke out as opposition parties and a faction of the ruling coalition demanded the report be presented in the parliament as promised earlier. The commission report was not debated on Wednesday, as it had not been presented to parliament.
Opposition lawmakers have alleged the bond auction cost the state more than $1 billion because of rising borrowing costs. ($1 = 153.50 Sri Lankan rupees)
(Reuters)
Latest Headlines in Sri Lanka
- Sri Lanka President approves anti-corruption units in provincial, local bodies May 15, 2025
- Sri Lanka allows salt imports until June 10, 2025 May 15, 2025
- Sri Lanka and India sign key agreements on restructuring external debt May 15, 2025
- Sri Lankan Government auctioning 26 vehicles, including Porsche and BMW May 15, 2025
- Sri Lanka President: Government backed by active, forward-thinking voters May 15, 2025
Action, at last.
The cockroaches in the CB took 3 years to identify petty officers who telephoned PTL and gave them info on the treasury bond bids that came on that fateful day.
The Grandpa White haired CB Gov should be sent home without any further delay.