Perpetual Treasuries made highest profit from bond auctions

CBSL assistant director reveals:

By Sarath Dharmasena and Shyam Nuwan Ganewatte

Assistant Director of the Central Bank of Sri Lanka, Sudesh Sedera, testifying before the Presidential Commission to probe the alleged bond scams, yesterday, said that out of the 16 registered primary dealers, Perpetual Treasures had earned the highest profit from the Treasury bond auctions from Feb. 1, 2015 to March 31, 2016.

All other primary dealers had made a profit of Rs. 5 billion, but the net profit of Perpetual Treasuries amounted to Rs. 5.4 billion, Sedera told the Commission.

Evidence was led by Deputy Solicitor General Milinda Gunatillake.

Sedera, Assistant Director of the Supervisory Department of Non-Banking Financial Institutions of the Central Bank, said that he had calculated the profits and losses of the primary dealers relying on information provided by them. They were National Savings Bank, the Bank of Ceylon, Bank, Sampath Bank, some state institutions and Perpetual Treasuries, he said.

Sedera submitted to the Commission separate profit and loss statements made available by those 16 institutions.

Additional Solicitor General Milinda Gunatillake objected to a request made by former Governor Arjuna Mahendran's Counsel Chanaka de Silva and the lawyer representing Perpetual Treasuries Nihal Fernando for copies of documents submitted to the Commission by Sedera.

The Deputy Solicitor General said those documents were confidential. Subsequently, the Commission decided to delete the names of primary dealers marked on those documents and hand them over to the two Counsel.

Cross-examined by the Deputy Solicitor General, Sedera said the primary dealers should make available to the Central Bank every month the details of Treasury bond auction bids, their sales, and the sale of bonds in the secondary market, and profits and losses resulting from those transactions.

Sedera said all 16 primary dealers, save three, had made profits and the total profits amounted to Rs.9.1 billion.

Of the 10 institutions which made profits seven were commercial banks and their profit was 39.9%

Sedera submitted a document to the Commission, stating profits made by those institutions before tax and after tax separately.

He said those who had not paid income tax were those who were not required to pay taxes.

The Commission will resume sittings at 9.45 a.m. today. .

animated gif
Processing Request
Please Wait...