26 June, 2019

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CEO Says State Entities Made US $ 164 Million Thanks To Perpetual Treasuries

Chief Executive Officer of Perpetual Treasuries Limited Kasun Palisena has written to all Parliamentarians denying that the Company’s involved in Treasury Bonds did not cause any losses to any state entities. He further claims that in fact the sale of Treasury Bonds to the Employees Provident Fund (EPF), Sri Lanka Insurance Corporation (SLIC) and National Savings Bank (NSB) these state-owned entities made returns in excess of Rs 25 billion (US$ 164 million).

Arjun Aloysius

Palisena further states in the letter copied to the President, Central Bank Governor, IMF (Sri Lanka), World Bank (Sri Lanka), ADB (Sri Lanka) and Transparency International (Sri Lanka( that ‘any person from the Central Bank or the relevant State entities’ would verify this claim.

This letter has been released after the Fort Magistrate named former Central Bank Governor Arjun Mahendran, his son-in-law Arjun Aloysius as Kasun Palisena as suspects in the Bond case. Mahendran was asked to report to CID before February 15, 2018.

Meanwhile, the Colombo High Court extended the the freeze imposed on all bank accounts of the Perpetual Group associated with Arjun Aloysius by one month.

This determination was a response to an application made by the Attorney General on behalf of the CID, Accordingly, bank accounts of 24 companies in the Perpetual Group will remain frozen.

Earlier, on January 24, the Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka (CBSL) had issued a directive that none of the 24 companies within the group can carry out financial business of any sort using the funds in their bank accounts.

The full letter is given below:

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Latest comments

  • 17
    8

    WOW,
    Why is young Aloysious wearing a sad face?.
    25 Bil even in LKR, is a hell of a lot of Dough, for those three State Enterprises.
    UNP Economists lead by Dr Ranil are desperate to sell these because their are supposed to hemorrhaging ..
    Is that right?…
    I think Palisena must be awarded the highest honor of Lanaka Boomi..I don’t know what you call it..
    Instead of issuing summons to visit the Magistrates in. Colombo..
    And Dr Ranil should put Palisena to run as the Srilankan, in place of Dr Ranil’s mate / cousin Ratwatte..
    And send a copy of the appointment letter to Mr Shymon Jayamanne..

    • 7
      8

      Kalu Albert Sumane how is your new pesudonym doing

    • 11
      8

      He is not wearing a sad face, but laughing through his rear.
      The people of Sri lanka will have a sad face when they find that their EPF has been used to purchase all the good things in life by Ranil & Gang.
      No one is hemorhagging in the Govt other than the general public.
      You are right !!! Palisena has better brains than Myfourpala the prez.

      You call it psynocockitis !!!!!! A sudden rush of shit to the brain.

    • 0
      0

      kaluu, are you from the school by the Sea ?!

    • 1
      1

      I think u guys are crazy idiots…
      How can u people jus get carried away by media reports, alone ?
      U guys must see both sides of the coin as well…
      U guys should see if there is any Scam in the first place… may not be at all !
      I will not go by the Presidential Commission findings.. it’s for your Courts to decide, finally…
      Afterall, no Company in the world works without Profits !
      They are not Charity Organisations !

  • 21
    18

    As i have said over and over again in my earlier comments that there was no loss to the GOSL.
    It is only the media led by sillysena’s seerasa which is doing the dirty work.

    • 14
      9

      Hamilton,

      Is exposing the scandal to the public dirty work?

      Nixon tried his best to cover up Watergate scandal. If it is not for the journalists Bob Woodward and Carl Bernstein, Nixon would have managed to do that. Ranil is behaving the same way Nixon did. I hope at the end Ranil will have to face the same fate like Nixon. Media should keep the Bond Scam alive without allowing this government to put it under the carpet.

      • 9
        4

        Ok Faraz, whatever you say…sirasa pays you

    • 3
      3

      WOW, what kind of vultures. Govt takes a loan from some one. govt did not lose anything. The amazing thing here, govt gets loans from the govt banks and earned money. what did you get Hamilton, CRUMBs or PTL CRUMBS OR MORE ? Now it is pointing fingers at Sirisena and Mahinda Rajapakse. Some say, Arjun Mahendran did not leave and he is still hiding in Sri lanka.

    • 1
      0

      Hamilton
      Sri Lankans are said to be literate. But they need the help of the Sirasa gang to understand simple arithmetic.When will we ever lose this herd mentality?

  • 13
    3

    To our President , Prime Minister & All “Foot Note” Gang: Isn’t this Mr. Palisena a RARE FIND? Before the IMF, World Bank or any other country grab him, please APPOINT him to that vacancy created in Parliament with the resignation of the UNP MP (yet to be filled) and make him the “MINISTER OF STATE” to supervise all the Ministries. Or in the alternative and the least, appoint him the SOLE , Chairman/CEO/ Board of Director of Sri Lankan Airlines. Our PM could do this without facing any objections.

    • 5
      3

      Palisena would make a fitting UNP politician with bond Scam Ranil and Galleon Ravi.

    • 0
      1

      Douglas,
      Regarding the “footnote gang”, you will have to eat your words! The Bond Commission Report says that the “footnotes were factual and not incorrect”!
      Just don’t get brainwashed by Sirasa, JVP and those UNP bashing SLFPers…..you need to read the COPE report to understand what clarifications are given by the footnotes.

  • 11
    1

    Why didnt you make this representation to the Commission of Inquary in the first instance ?

    • 11
      5

      It was made. But the commissioners wrote the report according to kodagoda’s word and prejudged everything in order for either of them to become Chief Justice and be in gamarala’s good graces

  • 13
    0

    Why no comment from the Governor Central Bank, other economists and learned citizens?

    • 3
      1

      Justice: Do we have any ‘learned citizens’?

      • 0
        0

        K.P,
        “Do we have any learned citizens?”
        The best question in this forum for the new year.

  • 14
    3

    Bull shit comic commission. Case dismisssed when it goes courts.No evidence of loss to the government.

    • 2
      3

      Rohan, I thought Mahendran is your friend since both of you are in Singapore

  • 8
    2

    Theoretically he is right. With the support of the other accused he pushed interest rates up bought Bonds from the central bank. Manipulated rates back down and sold to EPF. This yield was higher than it would have been if he had not pumped it up in the 1st place. So now that he is out of the market rates are at where they should have been in the first place. So EPF is making a profit.

    The loser was not EPF. it was the treasury / government that had to pay higher rate of interest for these bonds and all other bonds and bills it sold. Also to all the companies that were forced to borrow at the higher rate of interest from banks.

    • 0
      1

      Ajay,

      What you say is more like it. In this inter-contextual situation of money matters, there was no or little profit made in actuality. Otherwise, current GoSL would have converted it to hard cash long ago and cleaned up the horrendous garbage situation within their 3 year tenure- never happened.
      *
      Those coupons received by holders – can they be redeemable at any time, or is it a e.g. 25 year wait till futuristics come to fruition (crossing fingers)?

  • 10
    2

    In the Watergate scandal there were no direct loss to US government !

    Had the EPF , Bank of Ceylon etc made direct purchases of Bonds these institutions would have earned more.

    Had all primary dealers made bids for the additional Bonds( only perpetual came ready to buy them as they were in the plot)in a true auction the interest could have come down as they would compete.

    Had the Governor not raised the interest for the Bonds bought by his son in law , the national interest rates would be lower with so many benefits including to the government.

    The loss of faith in the central bank and its bonds is impossible to calculate.

    The loss of votes for the UNP , the footnote gang and Ranil in particular will be seen on the 10th.

    And finally we lost the best finance minister in Asia because of the Bond scam !

  • 0
    1

    Number wizardry! Yet another use of tables to mask facts.
    Trump gives himself tax cuts and says “See economy is booming”. For how long?
    Blair says “The trillion dollars spent to assassinate Osama bin Laden is worth it”
    Brexiteers say “Hard exit is cheaper”. In the long term?

  • 2
    1

    Only Sale dates are given. Profit-emerging dates are probably of yesterday. Has Perpetual Treasuries decide to incur a momentary loss from its wider regional enterprise to prove temporary profitability in the Lankan sector, is the question.
    *
    For absolute proof, we want those amounts converted to hard cash, and into Lankan necessities like garbage collection, organic farming, and money to flood victims. If it is going to sit in accounts of Vellala gold of futuristic aspiration in Singapore hedge funds, we don’t want none of it!

  • 4
    2

    It’s nice to see the other side to this whole fiasco that has been much talked about in the media. One should analyze facts and figures when forming an opinion or passing judgment. If Perpetual is not at fault they should continue to bring out there side of the story.

  • 2
    0

    It was not a loss to the govt institutes but අලාභයක් ප
    මණි
    In this caseit has to be subject to judicial review. There is a possibility for PTL to win the case as the prosecution has to prove

  • 2
    1

    Govt borrowed via PTL govt money and profited Rs 25 billion. Even if PTL’s totoal initial czapital investment Rs 300 million is given, govt van not earn that much of profits. How that is possible. Kasun Palisena should not be hired anymore as a CEO. He is not different from UNP thieves and Politician – thieves,

  • 0
    1

    For tax purposes, governments insist on splitting the companies’ income yearly. But a project a company undertakes need not to end with in that year. What the proper selling price of product for company depends on how long the company can sell it and how long the product life of it in the market. As a going on concern, if PTL lose on product X, it has to gain on product Y to stay in the business. So theoretically if PTL had kept its prices high on second product, no one accuses it that PTL has caused a loss to buyers or sellers. 2nd hand buyers bought it on their will. If the price was not right, the 2nd hand buyers’ employees have to be fired. Lankawe did not get back compensation for Greece Bonds. Same way they could not dodge the London court to pay hedge price to petroleum. After they have two bad cases like that, now putting their employees’ mistakes on Tamil PTL owners is only Sinhala Chauvinism.

    Theoretically, it never can be properly determined at what price PTL can buy and what price it can sell. But what the story of the Bonds will be determined at the end of its maturity time. If the rupee staying out of hyperinflation, if the Central bank remit properly yearly interest, if the rate of return on Bonds not lower than the new loan comes out to market, if the Central Bank redeem at the maturity at a fair value, then the bonds could be a profitable products for the buyers and sellers. If the PTL is a foreign company, it might have sought international arbitration and would have claimed losses for freezing its assets. Everybody did know after putting bugs in the tea, Lankawe explained a lot to Russia, but Russia went only on its path. Same with Nuraicholai, Hangbangtota….. China stood up as a contract is a contract.

    • 3
      3

      MallaiYuiran: How many Tamil CEOs are jailed in the USA for insider trading and stock manipulations. Tamils are crooks. they would kill anything and every thing if they earn some money. See how Pabakaran killed thousands you guys because he got Dollars and euros. It is the same with KArunanaidhi and Jayalalitha. They all victimized you people and became rich. Poor Tamils. See what Tamils do when they are treated equals.

      • 1
        0

        Jim,
        Poor man. I think you only got sil-mal saree and a chain from Mahinda? So, after killing Pirabhaharan who got those dollars and Euros? Were you there with Mahinda & Gota.

      • 1
        1

        How many Tamil CEOs are jailed in the USA for insider trading and stock manipulations.
        How many you do know Softy?
        It is ordinary crime, when a thief snatches a bag and run away, if the victim appears to be dangerous to him, he kills them. There is no race or color for this. For millenniums, billions examples are set up for this.
        Throwing Androcles to hungry lion is cruel story in Greek myths. In Mahabharata, an Ashura ordered a village to supply a man and cart of rice every day; where the man was the green chili for him to eat the rice.
        But, do know what is written in the history of modern Mahavamsa? A Monster Buddhist vegetarian, who was fighting with the inland Muslin on hallal for killing cattle, but ordered to his rapist army to supply Tamils, to feed his pet sharks.
        While dismissing LTTE IGP blaming him as protecting Lasantha killers, when Yahapalanaya appointed Mahendran to that CB job, we wrote about the game behind that deal; some appeared; many got lost; so you didn’t see them. To Tarnish the Tamils’ record under the British as being highly dependable and occupying the 75% of the government employments, this is a well-orchestrated game by Ranil to use in the election campaign that “I wanted to give a good job to the battered Tamils, but by the inborn trait in Tamils, those thieves played out me too; Look at Rajaratnam, Emil. I shouldn’t have gone to do any graceful thing to these horas”

        It is ok with us if here is high unemployment in Singapore, Ranil can bring Singaporean Tamils and give employment in Lankawe. But can Ranil takes away the Rapist Army who is stealing the Ceylon Tamils’ jobs in North-East so the Tamils can mind their own business, instead of coming to Colombo to steal Lankawe CB?

  • 1
    0

    If what Palisenasay is correct, why did they pay millions as Santhosams to officials at Central Bank and other banks?

  • 1
    2

    HAHAHAH good at making up numbers after the event Palisena? Humbly request to take note ……….? hahaha, have you run out of bribery money to Minsters, PM and MPs?

  • 0
    0

    they were both arrested today

  • 0
    0

    Thank you for enlightening us of the real situation. Now we know that you are an honest bloke earning an honest buck. But please tell us just for our curiosity who you meant by RK, HON.RK, RW, HON.RW when you yourself typed those text on your phone.

  • 0
    0

    The man on the people’s elected chair, CV is telling the Racist Colombo Government is not letting them even to change light post bulbs, a job of municipality. But Sampanthar still fooling the North-East Tamils that Sinhala Buddhist government will be granting Secret Solution. Reginald Corey so far has not told “Let the CB case go, let us forget about it. But insisting Tamils should let the Rapist Army’s murders and genocide to go. There is no one single Tamil suspect was let to go without applying the Maximum tortures using PTA Shameless, crook this governor.
    He keeps misinterpreting Old Tamil Philosophical song to his anti-Tamil Campaign. After the successful launch of jaffanahistory.com, project misinterpreting GOLEDN OLDIES has been undertaken by the Northern Administration.. A learned man, by saying that “Ninaippadhellaam nadandhuvittaal dheyvam aedhumillainadandhadhaiyae ninaiththirundhaal amaidhi enrumillai” insisting that Tamils are trying to override the God’s judgement by seeking legal remidy, where God wanted to destroy them. When, SJV’s spirit praying from the casket that “Only God Can Save Tamils”, Corey replying if your god can save you, there is no god in the world, but I have all the power to save the Rapist Army. A learned authority from the lands’ head, by says forget any crime took place against you, he is denying the extension of the security of land’s constitution to Tamils. While his boss promising to UNHRC of internal investigation, Corey is demanding Tamils just to forget about the 150,000 murders and quoting a cinema song as the defense!

    Sampanthar and Sumanthiran should take lesson from the two Tamils, Mahendran and Aloysius allured into CB game and now being used now to LG election. At least, at this time Sampanthar and Sumanthiran should stop dreaming for minister positions and start to agitate foreign diplomats for an international investigation. That is the only path to beat Aappa Diplomacy and resurrect Tamils.

  • 1
    0

    Moo Honda wada karayek! He has done all these at the age of 34. This shows that PM Ranil can choose right people for the right job at a huge cost to the country.

    • 0
      0

      Don’t throw mud at the PM for appointing a Governor, who was qualified to hold that job. Why were you people silent when MR reappointed PB Jayasundera as the Secretary to the Treasury when he was even condemned by the Supreme Court?

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