The Monetary Board of Central Bank on Friday indirectly admitted to a financial scam by one of its primary dealers, Perpetual Treasuries Limited.
In a statement issued on Friday, the Monetary Board expressed its concern over the sharp disparity in the performance of primary dealers, as well as certain issues in relation to the pattern of trading activities.
“In this connection, the Monetary Board instructed expeditious completion of the ongoing process of preparation of the relevant On-Site Examination Reports. This would enable the Monetary Board to make an early determination on the future course of action,” the statement said.
The order to expedite the on-site investigation was issued by the Monetary Board at a special meeting held on Friday to discuss the interim report on the operations of primary dealers including their financial performance during the year ended 31st March, 2016 as well as the five month period ended 31st August 2016.
Perpetual Treasuries Limited, which is linked to Arjun Aloysius, son-in-law of ex- Governor of Central Bank, Arjuna Mahendran recorded a profit of Rs. 5.1 billion for the year ending March 2016. The firm recorded an increase in its profits of up to 430 percent in comparison to the previous year.