Sri Lanka: Report reveals shocking truth on HSBC Scandal

( October 3, 2016, Colombo, Sri Lanka Guardian) The Business Times, a supplement of the Sunday Times, Colombo,  reported on Sunday October 2,  that the 5.2 billion rupee profit recorded by Perpetual Treasuries in the year ending March 2016, was higher than the year end profit after tax of five major commercial banks in the country.

The report further highlights that the unusual profits earned by the rookie primary dealer implicated in the Central Bank bond scams, is almost 100 times more than the profit earned by their nearest and more experienced competitor.

The paper says that the company – owned by the son-in-law of former Central Bank Governor Arjuna Mahendran – made a killing compared to a low post-tax profit of Rs. 57 million by Capital Alliance, one of Perpetual Treasuries’ competitors.

Perpetual Treasuries’ 5.2 billion rupee post tax profit, is higher than the post tax profits reported for the same time of DFCC bank with Rs.4.3 billion, Seylan Bank with Rs. 3.8 billion, NDB with Rs.3.5 billion, NTB with Rs.2.6 billion, PABC with Rs.1 billion and Union Bank with Rs.192.6 million.

Incidentally, Perpetual Treasuries, only received its license as a primary dealer in 2013.

According to the newspaper, certain primary dealers are frustrated by the fact that authorities are not looking into the matter.

The matter was raised at a press briefing held at the Central Bank Last week.

Governor of the Central Bank of Sri Lanka Dr. Indrajit Coomaraswamy on September 28 said that its is a publicly quoted company and presumably they have an auditor who will audit  -and their people as a matter of course they supervise and examine the primary dealers.

The governor added that if they see something untoward, obviously they will take action. But as part of their normal supervision and normal examination of primary dealers, if something is found, clearly, they would take action.

Over to you – For denial or action…..