Bonds issued violating ordinance in past - FinMin

The Ministry of Finance on Sunday said that the Central Bank, during the previous government has issued all Treasury bonds in violation of the provisions of the Registered Stock and Securities Ordinance.

Issuing a statement, the Ministry added that the bonds stipulated in a gazette include many bonds issued in the past at various interest rates since 2011 as well as new bonds. “There is no indication as to how bonds already issued in the past are issued again in 2015. It appears that the Gazette authorizes the past bonds also.”  The statement also said that information is available that the gazette dated 1 January 2016 to be published by the name of Ravi Karunanayake, Minister of Finance, for the year 2016 also has already been sent to the Government Printer same way in 2017. The publication of this gazette was immediately withheld. As such, all Treasury bonds have been issued in violation of the provisions of the Registered Stock and Securities Ordinance.

It further said, “This is how the Central Bank officers, so called experts and professionals, mismanaged public debt to facilitate Mahinda Rajapaksa Government and the Central Bank through questionable private placements of bonds. In such gazettes issued in the past, all private placements were also legalized as issuance at auctions announced by the Registrar of Pubic Debt.

Full report will be issued to the media after investigations and corrective actions will be taken immediately. Appropriate legal actions will be taken against those errant officers under the provisions of the Registered Stock and Securities Ordinance.”