CB responds to allegations made by JVP member Wasantha Samarasinghe on bond scam

Following the expose by the Daily FT last week on JVP Politburo member and Voice Against Corruption Convener Wasantha Samarasinghe’s letters and comments on the Government Treasury Bond scam, the Central Bank yesterday issued the following statement:

The Central Bank received three letters addressed to the Governor from Mr. Wasantha Samarasinghe; two dated 5/9/2016 and 19/10/2016 (signed as Convener, Voice Against Corruption) and one dated 4/1/2017 (signed as President, Inter Company Employees Union). These were responded to with letters dated 5/9/2016, 24/10/2016 and 17/1/2017, respectively.

In these letters sent by the Governor, Mr. Samarasinghe was informed of the actions that have been taken by the Monetary Board of the Central Bank with respect to the auctions and secondary market activities relating to Government Securities and the operations of the Employees Provident Fund (EPF). He was also informed of the Press Notices issued regarding the same matters by the Central Bank on the 2/6/2016, 4/8/2016 and 17/9/2016. 

With regard to operations of the EPF, the Monetary Board has taken several measures to strengthen the decision making process with respect to investments. These serve to safeguard the interests of the members of the EPF. 

An internal examination is currently underway under the direction of the Monetary Board on transactions of EPF in government securities during 2015 and 2016. As previously intimated to Mr. Samarasinghe, the law enforcement authorities have also been requested to carry out an external independent investigation into the issuance of Government securities in 2015 and 2016 and related matters as it involves examining internal operations carried out by the staff of the Central Bank. Mr. Samarasinghe was informed that divulging any information with respect to transactions of EPF will be prejudicial to any investigations that are being carried out in this regard.

With regard to the allegations against the Governor, the Central Bank confirms that its applicable procedures and legal provisions have been complied with, in the assumption of duties by the Governor.