22 June, 2024


DEW Gunasekera Cries Foul Over Latest Treasury Bond Issuance

Amidst allegations of yet another bond scam at the Central Bank, former chairman of the Committee on Public Enterprises (COPE) and leader of the Communist Party DEW Gunasekera has demanded as to why the Central Bank did not utilize the EPF Fund, or state banks such as People’s Bank or the National Savings Bank to obtain a short term loan facility instead of selling treasury bonds to ‘private capital owners’ at a high interest of 14%.



Gunasekera charged that even though the Central Bank had initially announced that it was going to issue treasury bonds to the tune of Rs. 40 billion in March 2016, the bank had instead issued bonds to the tune of Rs. 80 billion.

“This is the second biggest financial scam within a year,” he told a news conference on Monday.

Gunasekera also demanded Central Bank governor Arjuna Mahendran to reveal the names of the dealers to whom the treasury bonds were issued.

“This is suspicious because of the manner in which the treasury bonds were doubled even though the original announcement said that bonds will be issued to the value of Rs. 40 billion,” Gunasekera added.

Meanwhile former Deputy Governor of the Central Bank Dr. W. A. Wijewardena has also levelled allegations of the same in a column that was published recently. In his column under the subheading “Another Bond scandal?” Dr Wijewardena wrote; “In the recent past, the central bank, presumably with the approval of the Monetary Board, tried to suppress the interest rates in the market by rejecting all the bids at successive Treasury bill and bond auctions. But this is not a strategy which the bank can follow continuously since it requires the bank to compromise its monetary policy by financing the government through newly printed money. Hence, on occasions, it has to allow the auctions to determine the rates as well as the quantum of funds to be raised.

Dr W.A Wijewardena

Dr W.A Wijewardena

“In those auctions, rates invariably go up forcing the bank to sell bonds below their face value causing a loss to the government. In a recent such auction, as reported by the financial website ‘EconomyNext’, a 15-year bond carrying a fixed rate of 11% and maturing in 2030 has been sold at a rate of 14.23% or below its face value. Within three days, the yield rates pertaining to these bonds, according to the web, have plunged by about 2%, increasing their market prices significantly.

“It has allowed the original bond investors to earn a massive capital gain which could have been earned by the Treasury had the bonds in question been issued at the prevailing secondary market yields.”

“According to the Web under reference, the decline in the rates in this manner would facilitate the original investors to cash in Rs. 78 million by way of capital gains for each Rs. 1 billion worth of bonds they hold. This transaction with sudden declines in rates, it appears, is suggestive of another Treasury bond scam now rubbing on the face of the Monetary Board. The experiences in other countries show that, even after many years, such scandalous transactions can be reopened for public scrutiny. This makes it necessary for Board members to exercise utmost due diligence when assessing such transactions.” Wijewardena said in his column.

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  • 17

    This man was and will be a dried pumpkin for sure. Now being unable to save their face, jus tadd their two cts worth but not thinking twice.

    Wasidewa does the same. These men should say good bye to lanken politics.
    They have not done much to save the nation. Just lived on the perks offered to them. Seniors should behave like Gurus. But these bunch proved it not to have the least knowledge to be Gurus.

    In the previous regime, as the other leftist penisless colleagues, he did not nothing much. I am sure, Jvp men will teach the country how the job to be done as a COPE leading men.

    • 13

      Mr Gunasekara, I can tell you something. Had you the seniors done your job properly, nothing would have gone to that far in terms of fund losses in mountains weise.

      You had always a big mouth… but kept silent letting Rajakashe et al looted as much as they could. This is a shame you as most senior politicans of the country. People kept faith on you – but your performamnce were far from the all low levels.

      I believe Cope guys run by JVP today, will make a significant change teaching you guys a very good lession.

      You guys as most senior men could have done a lot bringing the mad man into proper track – not allowing him to behave as Zimmbabwian high men.

      • 4

        It is laughable that fat Arjuna Mahendran, the corrupt clown and insider trader, is to investigate the Panama Papers leaks on the individuals who have looted Lanka.

        Mahendran is acting as if the Panama papers are false, when they have been carefully checked by eminent jounalists after they were released to the Sudeutche Zietung and other well known international newspapers after careful checking. Mahendran’s reaction to the Panama Papers reveals his own liking for stealing and tax evasion,
        Mahendran is an insider traders thief who probably has funds stashed in SIngapore and China, and so he pretends that the Panama Leaks are fabrications.
        Arjuna Mahendran in an IGNORANT SCOUNDREL.
        The Panama Papers tell the truth about the looting of the third world and the corruption that is legalized by the IMF and world Bank in the international system, but Mahendran is pretending that they are false.

        Mahendran makes the illegal legal and the legal illegal. What a tragic joke so called ‘good governance’ is in the Miracle of Modayas with a corrupt clown as Central Bank head!

        • 1

          Don Stanley

          You are spot on .Would the PM of Iceland have resigned if the Panama Papers were not authentic ? The man is laying the ground work to sweep everything under the carpet .

        • 5

          wHERE we need focus is to find out who the sicky men and their where about to have grabed the billions from the poor nation.

          Allegations are levelled at Rajakashe and kith and kin for all these, but it is right time to clear them and leave them either prison or live them in the society if they are clean.

          Nothing else need to be done this regard.

          If the issue is complex, the journos shoudl make it clear the stand of the trace.. Then people of this country will be happy knowing that it is on being investigated.

        • 0

          Don Siman,

          Can you post the list of names revealed in panama papers relating to SL without barking?

    • 5


      Dew is not only a dried pumpkin, he is a diabolical crusader propping up lies and when caught hide behind the blood soaked shawl of MARA.

      Do you remember this guy saying LTTE’s Yogi and Balakumar were killed in the battle field when they to the contrary were seen taken away in a bus load of surrenders by the army from Vanni.

      I had some respect for him sometime ago. No more.

      He and Prof Vitharane are downright political cheats and good for nothing guys- real reflection of failed socialism which they themselves contributed to fail. You can fuse Wimal Modawanse and Game Kolla Gamampille with them.

  • 15

    ……and Arujuna M is trying to investigate stolen money in Panama. What an irony???

    • 8

      No man, that is no means an irony. Arjuna M s mistake was not taking all the billions to his pockets, but the decisions made by CB caused it. There, you cant put the entire blame on him. This is still under investigation. And nobody can attack him in that way. So long he has done nothing wrong – how can you put the entire blame on him. The case should be investigated and once verdict is there only we can attack him. But Rajaakshes as a minister of finance should be accountable fo rall the higher abusive acts deliberately done by his team. There, nobody can make him be free from attack directly.
      Today, journos or others are still Rajakshse supporters. They would NOT bring unbiased articles.

      Peacock mansion was reported to be a house bought by Rajakashe but not a single joruanlists loudly brought an article about that. They always make round abouts covering the mafia king.
      And what are the charges levelled as Yoshita Rajaakshe for having bought an another mansion for his one of the bought grannies in colombo suburbs. All these were made with the names of the others, all these must be revealed to the poor folks… whose monies were grabbed this way.. in billions.. ? While letting Rajaata kidney patient dead without dialyse machine.

      While poor of the poor as being revealed by Sirasa these days-through their village visiting programs -how poverty is really existent in the country (for sure over 30% of them are still living in thosse under poverty statues).. while most abusive men surrounded by Rajakshes lived as if they came from oil rich arab countries. All these rae no figivable. Basta.

      • 8

        Freedom to express oneself is amazing. Where were all these big talkers when it mattered?

  • 11

    DEW Gunasekara should bring up this issue in parliament. A debate and or a written reply will enlighten every one.

    • 7

      Luckily this moron isn’t a member of parliament anymore. Hopefully he’ll kick the bucket before the next elections. Hopefully Raja[Edited out] and co kick the bucket too.

  • 10

    DEW did a far better job in COPE than most others, and drew attention to many an irregularity.
    Some of us confuse the message with the messenger.

    DEW has raised a pertinent question which deserves to be answered.
    It is dishonest to cast aspersions, call people names and analyse motives while refusing to seriously consider the issues at stake.

  • 6

    The Governor Central bank is always under constant attack because he
    comes from a minority community and the PM, under whom he is performing
    should ask him to make use of the prime time on govt.TV and explain to
    the people as to what is going on in CB on a weekly or monthly basis,
    routinely. By this way he could avoid the constant bickering specially from Joint opposition stalwarts like, DEWG,GLP and Cabraal.

    General public and the Govt. feel that he is doing a perfect job at
    CB ,after a few hic ups during his 1st few days in office and he is
    now one of the well respected CB Governors in the region.

    • 5

      Would you then suggest that Cabral too was under attack because he was from a minority community and the President under whom he was performing?

      • 9

        Sekara – I am sure you are aware that media freedom was given only after 08th Jan 2015.

      • 2

        Lanka Watch, thanks.
        The point I am made is that G/CB was not attacked simply because of his nationality. There may be various motives, but that cannot be reason to dismiss serious concerns. Any serious charge deserves a valid answer.
        Cabral was attacked too (often for his misdeeds) despite lack of full media freedom, and was protected by MR.

        AM’s appointment itself was irregular for several reasons. Before that row died down, he presided over the Bond scam.
        It is not whether he or his family profited but the sham inquiry into the incident that raised suspicions.
        Before those rumblings faded away, we have this.

        The lack of transparency is worrying for a person who as you say is “one of the well respected CB Governors in the region”.
        It could be the government which was responsible. But hings need to be above board

        The points raised by DEW and Wijewardena are not about an individual but about specific issues.
        It should be the message before messenger.

        • 1

          Sekera – Thanks for your input on the subject. G/CB’s job is to find money to pay for Govt. expenditures and he may find various methods to achieve it by borrowing, locally or abroad as we are not on top of our economy to have large reserves . He is directly
          answerable to the PM. and DEWG, whom I admire for his knowledge and experience on this subject, should talk the PM in the parlia
          -ment as this is not a matter for the layman, who views it sus-
          piciously, pumped by some mushroom media outlets and he tends to
          treat the G/CB , a corrupt person, which is not good for the ins
          -titution and the country.

          • 1

            Point taken. Thanks

  • 3

    Please read the following paragraph:

    “‘EconomyNext’, a 15-year bond carrying a fixed rate of 11% and maturing in 2030 has been sold at a rate of 14.23% or below its face value. Within three days, the yield rates pertaining to these bonds, according to the web, have plunged by about 2%, increasing their market prices significantly”.

    These are my observations based on the above bond sale:

    1. Rs 100.00 bond has been sold by the Central Bank at a discount value of Rs. 85.77.
    2. The effective interest paid by the Central Bank on these bonds are 12.82 or approximately 13% (nominal rate is 11% for Rs. 100 bond).
    3. The interest rate prevailing in Sri Lanka or paid by the Bank for Fixed Deposits are around 9%. So that, the Central Bank is paying 4% higher than market interest rate in Sri Lanka for 15 years.
    4. Central Bank bonds are considered as the “Risk Free” Debts because they are issued by the government and there is no risk of defaulting.
    Generally, the risk free interest rate should be very low.

    This is an obvious financial fraud and crime. We need to ask the following questions:
    1. Why the Central Bank is borrowing at such high rate of interest when the market interest is 9%. (The average interest rate in the developed countries such as USA and Australia is around 5%).
    2. Do we need an “Expatriate” imported Central Bank Governor to set this kind of financial policies or transactions.

    I kindly request “Yahapalanaya” boot lickers to provide the answers for the above questions.

    • 7

      Why you call them Yahapalanaya bootlickers ? That alones proves your knowledge. The investigations are being underway in term of so called fraud being done by CB. But that is no means comparable money laundering or grabs as become evident day to another by previous regime. Ascending withteh process we will get more. Wait and see, truth will succeed whoever simple simons like you seems to be unable to see it right let alone yet.
      Having listened to current President s blunt speech made to the press day before yesterday, I felt, my god, what a leader former president should have been. Unless Royal family from Uk did nt interfere the Tangalle murder issue, the Rajaakshe biased judges would never send the murderer – close companion to Rajaakshe family to the jail. That is how they controll lanken justice system.
      He the current president revealed to the nation, how the letters issued by him and UPFA secretary ended up uneffective once the former President asked to do so, in terms of dismissal of the murderer of above case, as a SLFP party man: These are prima facie evidence anyone that still see to hang on the most abusive mass murderer Rajaakshe. I beleive, people should rally round to corner Rajakshes to the very same manner lanken forces did it with Prabakarna. Mahinda Rajakashe is born backstabbing nature- he says something and doing something else, acting the role day light migel at night daniel. People open your eyes, never be caught by idiots that work even today as Rajakasse back lickers.

    • 1

      Sure, we cant expect lanken to do the job the way Germans, Japanese or others may have done it sofar within the sources in the contry.
      We are not a devleoped nation.

      Me too feel the way it moves is very slow, but not having well experienced men and women to go against corruptoin handlings, it can definitely take some more time.

      The murder cases related issues could also last longer, we dont have Royal Investigative bodies such as the UK or other countries are eqipped with. Thadjueedeen murdres is declared as a murder and investigations are moving forward, i ma sorry for the parents of that vcitimized family, but the hope is still there….

      And Duminda Silva and his all higher abuses are being investigated though they are on a slow mode

      All other cases are under way, though with the snail move… if MasterThe Maastricht Treaty [ (formally, the Treaty on European Union or TEU) undertaken to integrate Europe was signed on 7 February 1992 by the members of the European Community in Maastricht, Netherlands. On 9–10 December 1991, the same city hosted the European Council which drafted the treaty]

      Had the kind of treaty financed and provided a team to investigate – for sure, all of them would have taken its as of now. But we are poor nation, and we have to be dependent on others… given that situaiton , people should change their mind sets to realistic modes.. then only we can ever achieve anything.

  • 0

    Dear Rathu Sahoradaya DEW Gunasekara,
    I completely forgot that you are not in parliament now. Nevermind,still you should bring these issues through most appropriate MPs in the parliament.
    The most suitable MP is MaRa. He is an ex president and ex prime minister. He is brother of GoRa whose family in the US not in China or India. Hope he respect you and obliges.

    If he decline your request you must approach rathe Sahoradya Vasu whose daughter is in US too and not in China or India.

    • 4

      He always spoke that there was nobody that did much through COPE; but why had Mr Gunasekara been that inactive while all the billions were taken by Rajaakshes men ? These leftists could turn the parliament if they had the will to do so. No, just enjoying the perks offered to the aged men, they continued. So were others, so how could senior have done their due ? These men are the crystalizers for Rajakashe to go amok this way.

      Today, I read on the tabloid the greetings from Rajaakshes too.. he feels even if he is defeated by people not being able to do the job as due, that he is still able to govern. How can a former leader make himself so ridicule this way ? World is laughing at srilanka. Entire world does so.

      • 1

        Before the presidential elections I was like you and agreed with The Yahapalanaya that MaRa stole billions but lately I seem to have my doubts! Where are the billion stolen? We were told that they found some of it in the Middle East but low and behold that too was hushed up! was it due to some one else having the billions? As for CT bloggers the moments some one says a bad things against a Tamil (Mahendran CB Governor) its a racist who has commented! Grow up from being a racist! Its time someone told us the truth! We know that Mahendran is a fraud as his son-in-law’s company has made (B?)millions from the two deals that are highly questionable!

        Ranil going back to China after he said that he is stopping the port project looks as if he has made a major mistake!

        Don’t blame the former leader! Blame the present leaders for being totally incompetent! We can only elect new leaders and it’s up to them to make themselves successful! If the present leaders were successful will we be even writing about the former leader? We should not protect anyone but condemn the wrong things they do!

        • 2


          with all Respect, please let me differentiate the issues.

          China and India must be with any poor developing country in today s trend in the world. No small countries such as ours would ever be able to raise our head wihtout those giant markets. Even Germany, Switzerland and the like country make ties with India as had not been before.

          So Current rulers had never ruled out that they would not make ties with China and India.

          Port projects had all kind of unanswered issues – that the people would never get them. Like the lease offered ot them. Now withthe new proposals they have decided to go fo rthat – with 99% long known lease method with foreign investors. And the fact that they had already spent a lot for the projects in colombo port, and fully be away from it is a big loss for both sides should be clear to any right thinking ones today.

          Yes, wait the billions of losses made by Rajaakashes will come to surface sooner than later, please wait… current systems would nto say much, they will show you them wiht the time. As it is the case, for any counrty the kind of high profile corrupted handlings of Egypt or other countries have taken that long, so how can srilanken investigations be quicker is the other question. Besides, lanken state would not want to spend unnecssary sums asking foreigns aids for the investigations. Besides, no more MR s games can be affordable to the country today. They have not looted and ruined it to the manner Greeks faced, but far near to that… MR has eated hundreds of billions not being able to manage them well.
          Alone small issues, he handled not thinking twice, as if the lanken state funds are their own properties. See how they spent those Commonwealth ceremony as no other europeans, but what was the consequence than going for price hikes and putting the heavy loads on the public. All in all the man ran amok interms of lanken finances. Saying that he saved SRILANKEN, what he did was just enjoyed within his family, him being put Rajathuma. Today, Srilanken is the most bankrupted airlines and its destiny is being discussed to solve. man any one with a bird brain would see it but some like you, would not get it easily. So long you guys see this way, nothing can better to the entire srilanken.s

        • 3

          What is wrong with Ranil s trip to China, India, EU or the states ?

          Most of them are so fruitful than those of MR filled with lanken flights blocking all the way loosing millions rather than saving funds for the benefit of the nation.

          Why you ask not to blame the former man ?

          Give us constructive answers man – with all the wreckage left to be solved, the man being aside today, further beahves no second to a rascal. I bet something big is ahead of us, interms of MR and his thieves. They will learn it from the current duo sooner than later, people will have back the goodies rather than badies.

          The problems MR did was no means repairable …

          Srilanken alone is made debtors for centuries. While Swiss and SOME gERMAN airlines are subsidized with other giant from ME countries, ours to keep as a white elephant was not a time worthy but to fool the nation.
          The days Emirates hired lanken airline, CBK and the admin saved billions. That is evident to anyone. But changed the name being that radical drove them away… then fools thougth Maharaja saved even SRILANKENS.. we have now our airline… all these rich countties run their airlines with much losses..but not to face big losses, they take due steps. … Our meeharaka ate the country as no others. by abusing the nations funds … he deserves no more security men but a big prison to be kept for the rest of his life.

  • 1

    You say
    “Most of them are so fruitful than those of MR filled with lanken flights blocking all the way loosing millions rather than saving funds for the benefit of the nation.”

    Most of them were not fruitful and that’s why Ranil had to go to China and eat his words as he said “I will stop the port project”

    “Give us constructive answers man – with all the wreckage left to be solved, the man being aside today, further beahves no second to a rascal.”

    The constructive answer is we all voted for the yahapalanay to bring a change which never came! We still have nepotism with relatives appointed every where! we still have frauds at the Central Bank! we still have a large Cabinet! We still see politicians misusing the roads! There is no change! Oh where is the change that was promised? They blame the former President and do the same wrong things that he did!

    don’t try to justify the wrong things the present government is doing!


    Who made MaRa rajathuma? President Sirisena!

  • 1

    You are SPOT ON.
    The only comment worth reading.

  • 1

    DEW is a disgrace to this country and should be shot through his arse, for helping himself and MARA after getting into the parliament through the back side.

  • 0

    We can’t take seriously what his dead left DEW gura utters because under Mara he was as good as dead and buried. Yes, I too agree with the proposal of conducting public discussions with the CBG explaining the situation and facts periodically.

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