Bond Allegation

Mar 06, 2015 (LBO) – Sri Lanka’s Economic Affairs and Policy Planning Ministry said that the government will issue a statement today regarding an alleged insider dealing in Sri Lanka government securities markets by a firm connected to the family of Sri Lanka Central Bank Governor. Asked about the issue, economic affairs deputy minister Harsha de Silva told LBO that that the government will issue a statement through Prime Minister's office today explaining details.

"We are issuing a statement through the Prime Minister's office." De Silva told LBO.

He was quoted saying that the government is taking necessary steps to look into the said deal.

"We have faith in the governor of the central bank," De Silva was quoted responding to questions at a Sri Lanka Law Conference whether alleged insider deals in gilt markets would be probed a media report said.

"We expect the governor to make sure that he carries out an appropriate investigation into whatever the incidents that people say have taken place."

However when contacting Prime Minister Office, official said that “we have not yet but might issue a statement.

There has been rising concerns in bond markets over controversial deals made over the past week by Perpetual Treasuries, a firm connected to Arjun Aloysius, the son-in-law of Governor Arjuna Mahendran.

Perpetual Capital group had been involved in controversial stock market deals with the Employees Provident Fund which have been questioned before.

Updated