Apart from the request to the police to probe the primary dealer, the Central Bank is also carrying out internal inquiries against Perpetual Treasuries.
Perpetual Treasuries which has been accused of having a direct link to the Central Bank Treasury Bond scam, recorded a profit of Rs. 5.1 billion for the year ending March 2016, which was 430 percent increase in profits in comparison to the previous year.
During, Mahendran’s tenure as Governor, Perpetual Treasuries made the news rounds after being allegedly involved in a Treasury bond scam. Reports claimed that Perpetual Treasuries was issued, directly and indirectly, with Rs. 5 billion worth in bonds at 12.5%.
The COPE report released last year also recommended that a law enforcement agency must carry out an investigation into Perpetual Treasuries Limited and how it received undue advantage as a primary dealer from the Central Bank. “Investigations must also be conducted as to how Perpetual Treasuries Limited recorded a very high profit in a relatively short period of time,” the report by COPE Chairman Sunil Handunneththi said.