How did Perpetual Treasuries make it to the top?

cheers Friday, 10 July 2015 11:24 AM

You can call all the shots in the law book but fraud is a fraud and you probably as a lawyer must be knowing the way out clause

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Sam Friday, 10 July 2015 01:46 PM

They claimed that Perpetual Treasuries may have benefited because Cabraal’s sister was on the Board, but I find that in the period before February 27th, they placed 15 bids for bonds, for a total of 22 billion, and were successful only once, for 27 million rupees.But, with bids of never more than 2 billion before.

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R.M.B Senanayake Friday, 10 July 2015 04:02 PM

The reason why the Public Debt Department called for $1 billion is based on the capacity of the market. It would have been ok to take more provided it was at the same rate as the tendered rate. Taking the larger offer at higher rate is wrong. The market knows that the Government needs a lot of money. But the Public Debt Department is bound to borrow at the best rate of interest. The Government is a monopoly buyer and has market power just as the tenderers who are a monopolistic group but they cannot exercise such market power unless they get together and act in consort. Economists refer to countervailing power. When a monopoly buyer is in the market and faces a monopolistic group it is a matter of relative bargaining power. So the decision of the Tender Committee is wrong. They who know the market would never have taken such a decision if there They know the market better than the politicians who are generally lacking market exposure. This applies even to the Prime Minister.

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sam Friday, 10 July 2015 04:26 PM

Mr Sujeev Senasinhe why don`t you speak in Sinhalese language rather than destroying English language.

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