Suspension on Perpetual Treasuries extended by 6 months

The Central Bank has extended the suspension on controversial primary dealer Perpetual Treasuries Limited by six months.

“The Monetary Board of the Central Bank of Sri Lanka acting in terms of the regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance, has decided to extend the suspension of Perpetual Treasuries Limited (PTL) from carrying on the business and activities of a Primary Dealer for a period of six months with effect from 4.30 p.m. on 05th January 2019, in order to continue the investigations being conducted by the Central Bank of Sri Lanka,” a statement said.

The suspension on Perpetual Treasuries was first implemented on July 6, 2017 for a period of six months and then was extended by another six months on January 06, 2018 and by another six months on July 06, 2018.

A Presidential Commission of Inquiry, which probed the rigged bond auctions that allegedly benefitted Perpetual Treasuries, has recommended criminal action against those involved and profits to be recovered.

Perpetual Treasuries owner Arjun Aloysius and its Chief Executive Officer are currently out on bail. Former Central Bank Governor Arjun Mahendran, who happens to be the father-in-law of Aloysius, is absconding court and has a red notice for his arrest.