CoI on SriLankan: CBSL legal head disputes claims of issuing ‘blanket’ clearance to issuing of Treasury Bonds

Central Bank (CB) Legal and Compliance Department Acting Director, K G P Sirikumara denied claims of being responsible for issuing a ‘blanket’ legal clearance to issue Treasury Bonds under a direct placed system, at a hearing at the Commission of Inquiry into Irregularities at SriLankan Airlines, SriLankan Catering, and Mihin Lanka.

Mr Sirikumara  who appeared before the Commission claimed that his clearance for a particular financial transaction was misinterpreted by another senior employee of the bank last week. 

Mr. Sirikumara disputed the transactions that were said to have been cleared using his legal clearance alleged to have been used for a particular issuance of Treasury Bond in 2008.

He was disputing the claims made by Assistant Governor N. W. G. R. D. Nanayakkara last week saying that one particular legal clearance was used to issue treasury bonds issued thereafter by the bank. 

Additional Solicitor General Niel Unamboowe PC who led the evidence noted that under the Registered Stock and Securities Ordinance (RSSO)of Section 4, the Minister of Finance is vested with powers to issue treasury bonds using legal procedures including a prior gazette notification ahead issuing treasury bonds. 

Mr Srikumara told the Commission that though CBSL failed to comply with some legal procedures including issuing of a gazette notification ahead of issuing treasury bonds, his department maintained that proper procedures were adhered to accordingly in the past.