Loss minimal if accepted procedures followed, says CB assistant head

Published : 8:21 am  April 3, 2017 | No comments so far |  | 

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By Manopriya Gunasekera and Ranjan Katugampola  
The Assistant Governor of the Central Bank Sepala Ratnayaka, giving evidence before the Presidential Commission hearing the bond issues, said that if established procedure was followed during the auctioning of the bonds the loss to the State could have been averted. He said that at the bond issue that was held on February 27, 2015, the acceptance of bids for 10 billion rupees caused a colossal loss to the government which meant that inflation increased in the country.   
While presenting facts about the changes that had taken place in the money market as a result of the government’s decision to accept bids of Rs. 10 billion for the bonds, the assistant governor said that he could not accept this move as being the right one even if a gun was pointed at his head. He also said that he had stated that if they agreed to this decision they should remove their clothes and leave the room naked after approving this sale and letting it go through.  
This commission comprised Supreme Court judges K.T.Chithrasiri, Prasanna Jayewardene and former Deputy Auditor General Velupillai Kandasamy.  
This Presidential commission had been appointed by the government to examine the issue of treasury bonds during the period February 1, 2015 and March 31, 2016.  
The Assistant Governor of the Central Bank Sepala Ratnayaka made the following declaration: “ I am a 1st class economics graduate of the Kelaniya University and I was appointed to the Central Bank in 1983 as a  non-staff grade member of the EPF department of the Central bank. Later I got the M .A. degree for economics from Colombo University. Then I got a Doctorate (PhD.) from an American university. In addition I got a postgraduate degree for Economics, There I did a research thesis for launching government budget policies.”  

 

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