CB Governor to take leave during investigations: PM

Tuesday, 17 March 2015 - 15:27

Prime Minister Ranil Wickremesinghe made a special statement in parliament with regard to the Treasury Bond issue of the Central Bank.

During his statement, Prime Minister Wickremesinghe told parliament that he was informed by the Central Bank Governor that he would not report for duty until investigations are completed.

Elaborating on the matter, the Prime Minister stated that due to past misdeeds, the Central Bank has been forced to embark on the task of rebuilding their credibility and standing as the country’s most credible financial institution.

He added that they have been adopting a system of private placements of bonds, leaving behind a legacy of mismanagement and misrule.

The criteria they have adopted allowed the central bank to cut deals with primary dealers.

The Prime Minister also said that after the new regime came into power, the Central bank adopted a prudent system of calling for competitive bids, resulting government to raise funds at the most competitive rates.

He added that the 20 year bond of June 2014 was issued at an average interest of 11.75%, and the latest bond was sold at 11.73%.

This was slightly lower than the rate paid last year. He added that they were able to raise just over Rs. 10 billion at a rate cheaper than what the previous government paid.