Nivard lists summary of losses of Bond Scam

Monday, 8 January 2018 00:41 - - {{hitsCtrl.values.hits}}

Former Central Bank Governor Nivard Cabraal in a statement has listed the summary of the losses of the Bond scam.

Following is the full text of his statement.

In this regard, at the invitation of the Bond Commission, I have submitted a comprehensive assessment of the loss suffered on 25 October 2017, a summary of which I believe would be relevant to be set out in this statement.

Direct loss to the Government as per the computations of the Auditor General - Rs. 1,674 million

nIncrease in interest burden of the Government due to the unnecessary and unwarranted increase in interest rates - Rs. 144,598 million

The loss suffered by the public due to the unnecessary and unwarranted increase in interest rates – to be computed
The consequential losses suffered by the economy due to the erosion of confidence as a result of the bond scam
Economic growth dipped significantly since 2014
GDP as well as GDP per capita stagnated
Inflation dipped in 2015, but rose again in 2016
Number employed dropped dramatically
Balance of Payments (BOP) turned into a massive deficit
Trade deficit expanded significantly
Foreign Direct Investments (FDIs) dropped drastically
External reserves plunged
Foreign Investment in Treasury Bills and Bonds reduced significantly
Sri Lanka rupee depreciated substantially
International credit ratings worsened
Fiscal deficit widened
Public debt surged to dangerous levels
Government interest cost escalated
Sri Lanka’s global rankings fell dramatically
The losses suffered by the EPF and other Government institutions

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