13 April, 2024


Exclusive: UNP Cover Up Effort Results In All Bond Scam Evidence Becoming Public Documents

As a result of the petition filed by Deputy Minister Sujeewa Senasinghe, requesting an order preventing the publication or circulation of the Committee On Public Enterprises (COPE) sub-committee report on the Central Bank Bond issue, all the evidence becomes public documents and may be reported freely.

Prime Minister Ranil Wickremesinghe

Prime Minister Ranil Wickremesinghe

UPFA had filed answers last Thursday including all the evidence to show why it was necessary for the public to know the real situation. 

Colombo Telegraph has managed to obtain one document filled amongst other papers incorporate much direct evidence of the bond scam. We publish below the document in full;

The effort by the Hon Sujeeva Senasinghe to block publication of the report on the Central Bank Bond issue proved a blessing in disguise. It prompted renewed study of the actual proceedings, discussion of which had not been prevent by the Court.

The proceedings in themselves provided ample evidence that irregularities had occurred. They also make it clear that the Prime Minister was directly involved in the decision. The Governor admittied (21/6 p 1) that ‘This is the policy decision that was taken by the Hon Prime Minister’. But when he was asked whether the Prime Minister was allowed to take such decisions, he dodged the question and siply said ‘It was in the interests of the transparency of the system’.

The Monetary Board, which should take such decisions, did nothing of the sort. It was simply informed by the Governor that the Bank (ie he himself, though in accordance with the Prime Minister’s policy decision) had temporarily suspended the system of direct placements. There was no Board Paper recommending this, in contrast to what happened in 2008 when it was decided to make greater use of direct placements on the strength of a Board Paper.

The matter is the more serious in that an earlier report commissioned by the Prime Minister had claimed that ‘there is no evidence at this stage to the effect that the Governor had direct participation with regard to the activities of the DD and the Tender Board Committee as aforesaid other than to issue certain directives based on the decision of the Monetary Board and the Operational Manual of the PDD’.

This borders on active deceit.

1. The Governor admitted (18/6 p 60) ‘I just walked into the office of the Superintendent of Public Debt’. He tried to insinuate that it was his management style to visit various departments, but it was clear that he spent a long time there. When asked whether the Governor was there at 10.45 am, the official who had to prepare the recommendation for bids said (9/6 p 70) ‘It was at 10.45 am, 11 am, and 11.05 am’, ie he was there up to the time the auction closed’. He then came back and was shown the document recording bids. This was described by the Deputy Governor in charge of this area as ‘Internal controls kadimak’ (5/6 p 81)

2. Far from not having any direct involvement, he made it clear that he wanted Rs 10 billion raised through the auction. Dr Azim noted (9/6 p 80_ that he ‘mentioned to the Superintendent of the Public Dept Department, to me and also to the others, ‘We should be accepting from the auction itself the full requirement of the Treasury and I would be happy that you all are taking this to the Tender Board’. When asked if the adverse consequences of this were not explained, the Superintendent said 96 p 27) ‘Especially Dr Azim, our Additional Superintendent explained him more than four times’.

3. The PDD recommendation to the Tender Board was to take Rs 2.608 billion but underneath that there is a Minute from the Superintendent saying ‘G instructed to raise funds buto Rs 10 bn taking into conderation of additional fund need of the Govt pl’.

4. A telephone call indicated that a member of the Department succinctly expressed the view that the Governor had imposed himself – (17/6 p 128) ‘man walked into the Department and said, “No. What rubbish are you’ll doing? Increase it. Give it at this level.” You won’t believe he wanted us to take all the bids.’

5. The Governor’s evidence contradicts itself as well as the evidence of his officians. He claims (18/6 p 29) ‘I just wanted to inform the Public Debt Department officials that there was a change in the thinking of the management which had been discussed at that Monetary Board. Also, I was new to the Bank. So, I was walking around everyday to different Departments. That day, I happened to go to the Public Debt Department.’

But the Governor also gave another reason for insisting on taking the amount by auction, and said he went to the Public Debt Department (p 27) to convey ‘to the Department officials – because the Monetary Board met on the 23rd, as I told you, and we had decided to go for an auction and that was the auction that was happening that day – the view that we should accept as much as possible from the auctions because the private placement method was not working. We had not been able to raise enough money, For this Rs 13.5 billion we only raised 3.5 so far for the first four days of the week.

The inherent deceit in his position is obvious from the fact that he makes a claim about the Monetary Board that is supposed to be based on something that was known after the Monetary Board met. And his claim that the Monetary Board had decided to go entirely for auction cannot be accepted since there is no such decision recorded in the Monetary Board minutes. His recognition that this was not true is borne out by the fact that he made a very different claim to the Monetary Board at its next meeting, on March 6th, which records ‘The Chairman informed the Board that the Central Bank temporarily suspended the method of direct placements of Treasury bills and bonds used to raise funds for the Government with a view to move towards a greater market mechanism based on standard auction system followed alternatively at present. Accordngly the Central Bank at ghe 30 year Treasury bond auction held on 27th February, 2015 decided to accept Rs 10 billion out of Rs 20 billion worth bonds received for Rs 1 billion announced to the market for bids in order to meet the Government’s funding requirements only from the open market bids’.

It should be noted that the decision was simply conveyed to the Monetary Board, not ratified. In other words, the man who claimed he was interpreting a decision of the Monetary Board to the Public Debt Department now informs the Monetary Board that the Bank had made a unilateral decision. That he had misled the PDD about what the Board had decided at its previous meeting was not conveyed, nor that that PDD had urged him not to act in this fashion.

PDD knew well that the Governor’s unilateral decision would cost the country dear. Though there are different estimates of what the loss might be, the simple fact is that the country is paying more interest on loans than it would otherwise have done, had the previous system continued. It should not be forgotten that, in addition to the extra interest on this 10 billion, the Governor’s action led to interest rates going up in subsequent auctions. Whereas at the February 27th auction there were several bids at a premium – ie investors willing to pay more than the face value for bonds – after Perpetual Treasures got Rs 100 face value bonds at Rs 90, all bids were at a discount.

The attached table suggests the extent of the loss, by looking at the extra interest that has to be paid on government debt subsequent to February 27th 2015. And it should not be forgotten that Perpetual Treasuries, who previously had bid in the millions, bid for billions worth of bonds from February 27th onward and got most of what they bid for. They got bonds worth 12.6 billion between February 27th and March 10th, whereas previously, having bid 15 times, never more than Rs 250 million on any occasion, they had only received Rs 27 million worth of bonds.

Related posts;

Exclusive: Bond Scam; Full Text Of Interim Report Of COPE Inquiry

Bond Scam: Stop Publicising Or Circulating COPE Report – UNP Legally Forces

Full Text Of Ranil’s Bond Committee Report – I’ve Nothing To Do With Committee Findings: Dr. WAW

From Bomb Disaster To Bond Disaster

Bond Scam: I Was Asked To Head Central Bank – Dr. Wijewardena Responds To Senasinghe’s Allegations

Bond Scam: Ranil Says Media And COPE Chairman Guilty And Punishable

Bond Scam: Ranil Goes Against His Uncle’s Wish

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Latest comments

  • 15

    This is Batalanada Ranil’s latest attempt to save his ass and sacrifice Mahendran.

    True, I told the President I can’t sack Mahendran.

    He is engaged in preparing the Budget plus running the CB.

    When I come back after the 17, I will appoint another Panel,, although my first Pane cleared Mahendran.

    If the new Panel says Mahendran has done anything wrong, I will make sure Aloysious Perpetual is banned .

    And I will force them to give the money back.

    This was reported in the CT, Ceylon Today..

    Does this look like Yahapalanaya or Good Governance material?. Folks

    • 3

      Bringing back a Ranil’s friend who is Singaporean and not a citizen of Sri Lanka to run Central Bank as if there is nobody in whole Sri Lanka to run it,
      putting CB directly under Yahaplana Ranil taking it away from Finanace ministry and giving permission to raise money and increasing it to 10 folds through this MEGA DEAL
      Ranil has raised money for his friend Arjuna Mahendran for excellent retirement package to him and his family … What can I say … Excellent friend … Seriously I would like to be friend of Ranil … What a donor … He will surely go to heaven after this life …
      But the problem is it’s very poor Sri Lankans money delivering in hundreds of millions of dollars to his friend … arjun is not a bad guy not to look after his excellent friend….

      Yahapalanaya (good governance ) is not at all bad, guys ….
      Still many people think Ranil is the cleanest guy in politics in SL and waiting to deliver the government to the childless, born again Christian, corrupt, under world friendly, only talk no work and delivering lies gang ….yes! Many are innocent Sinhalese Buddhists who can be taken for any ride …
      But, tide is turning according to the pollsters about the election … It is very probable that 1956 would be reborn …

  • 14

    IF Ranil is an honest and accountable leader, he would have fired Ravi Karunanayake ten times.

    IT looks like Ravi Karunanayake always [Edited out]

    • 3

      first of all the central bank was under mr RW not RK so first he would have to fire himself

      kindly get an idea of which ministry the central bank is in
      because of ravis court case on the foreign money laundering the purview of the central bank is under mr

  • 14

    This is another bandit and he is worse than the so called Ali Baba. Voters should be aware of this before they make a decision. Sunil Perera, the Baila man has a new job – instead of siding Ranil, he should expose him without chasing behind Rajapakse.

  • 15

    UNP voters,Are you giving a preference vote to the big Thief Ranil, his cover up agents Sujeeva, Eran and Harsha ? You must make your decision on your conscience.

  • 8

    According to KA Sumanaya’s and Jim Sofa’s crappy world perceptions this is the world’s strongest evidence paper against any suspect ever to walk on this planet! But quite contrastingly this is the worst ever gossip and rumor-mongering crap ever discussed on public domain in Sri Lanka! This explains the low levels the logicality, reasoning ability and common sense of the so-called social reformers, politicians, layers, civil activists et al have deteriorated. This case has already been outright rejected by a court of law as having no title or reasoning or legal basis to be challenged in a court of law. Yet bankrupt politicians, crooks, thieves, criminals and web-poacher-mongers like CT who desperately want the ever-most-corrupt criminal MARA and his nepotistic herd into power again are trying their ass-out best to plant this myth in the social mind realm utilizing Goebbels theory!

  • 11

    Mr No name has written this article. If you are telling the truth why not put your name.

    Ranil is not a rogue your own President said that. The President did not say that he found the Govenor of CB guilty. He said that since Ranil is known to be Mr clean that he will recommend the CB Govenor to tender his resignation.

    The MR fans only has this bond scam to talk about. What about the rest of the corruption which is coming up but yet to be proven. They must be investigated before all the bond scam. Because if you go by dates, those happened earlier. Why only the bond scam has to be revealed.

    This writer has not found any other articles related to previous corruptions the Dubai Marriot for instance.
    Can you find those also and publish, we would like to see the bond scam that you call a scam also taken up. But we will do it in order of the dates which they happened.
    We have not fired MR for those or Basil. They are also scams. Not investigated properly. Lets investigate how a floor supervisor got the money to build a hotel in Dubai too!

    • 7

      Anil. . Wake up.. We voted good governance not relative good governance. Ranil is and has always been a thief!

    • 3

      Mr. No Name prefers not to put his name cause the white vans are out again under badlands ranil regime

  • 13

    CB must recover the loss at once, this country cannot take a hit like this!
    After the elections arrest RW and Mahendran and the gang of thieves.
    UNP is doomed!!!

    • 7

      Dream on !

      Your Mee Haraka is already trying to negotiate a graceful exit from politics !!

      • 4

        Point of view,

        Lasanda Mee Haraka still does not know his lead Buffalo has been eaten by dogs! Hence the fucker is wanking at the speed of knots!

        • 1

          My… My … So mush of filth, is the truth so hard to digest??? Let’s stick to the facts shall we??? Silly fools!! Just like Ranil!!!

        • 0

          Tsk Tsk. . You seem to be very ruffled. Truth hurts doesn’t it? Btw where did you pick up that choice language from.. sujeewa senasinghe? ?

  • 11

    I simply cannot fathom out why on earth this fellow Mahendran be at least suspended pending further investigation.

    This is the single most event on which the Pro MARA gang is scoring.

    If anything untoward happens in the election and the MURDERER AND PLUNDERER MARA becomes the PM, RW will be singly responsible for that calamity.

    Wake up RW/MY3 to this stark reality and redeem the situation for the sake of our country.

    We the public cannot pay the price for your inaction and follies in safeguarding a single individual thereby plunging the whole country to a point of no return.

    • 2

      Investigation has already been done by three stooge ‘Sirikotha’lawyers and Arjuana Mahendran was cleared of any wrong doing. That was the bogus investigation.

      A real investigation was also done by the “COPE committee and thats when the shiiiiit hittttttt the faaaaan and the stench was unbearable!

      Many cover up attempts including a restraining order from the court failed but President Sira saved the day by dissolving the parliament and he was brash enough to brag about it too!!
      If anybody has to safeguard the country it is from this bunch thieves and who else to do it except one and only Mahinda!!!

  • 9

    Where are those Ranil worshippers ? I will be looking for your comments on this one.

  • 0

    This comment was removed by a moderator because it didn’t abide by our Comment policy.For more detail see our Comment policy https://www.colombotelegraph.com/index.php/comments-policy-2/

  • 8

    It is a well known fact that Ranil, CB Governor and sections of the UNP were involved in this scam. However merely because UNP is corrupt, bringing back the MR clan would be like jumping from the frying pan into the fire or in Sinhala like exchanging ginger for chilies (inguru dee miris gatta wage).

    The duty of the voters at this moment is to vote for the honest politicians so that they can strengthen the hands of our President Maitreepala Sirisena.

    • 2

      Sirisena is a spineless man. He should have insisted Arjuna Mahendra resign.. but no.. He had to do as RW wanted

    • 2

      You are a real gamarala. Sirisena is also part of the deal don’t you see?
      He dissolved the parliament to save Ranil from beaing defeated in a ‘no confidence motion’over this deal.
      There is no other,other than Mahinda and if you don’t like him go jump in sea.

  • 4

    Will Batalanada Ranil’s pretty boy Colombo Sujeeva , join the SLFP?.

    Young Sujeeva goofed it big time, by trying the muzzle the good people who are trying to expose this Mother of All Heists in any Bank including Layman Brothers.

    Then young Sujeeva abused and threatened a good Cop who was trying to follow the EC’s guidelines for Yahapalanaya.

    And rightfully he was slapped with a court notice to front up to magistrate.

    He now says Rajapaksa is clean, and nothing to do with Galleo Ravi’s ” Gun Fight in Pathalaya “

    Young Sujeeva defending the great man Mahinda and putting the blame of this Yahapala act directly on one of the suspects of the CB heist is pure Gold..

    I take my hat off to young Sajeeva and may even consider him above Anura Kumara for my preference,,

  • 13

    I have always said and maintained that RW is a a very “Weak Leader” in the selection of his “Team” members. I don’t think even his cabinet colleagues or advisers would have agreed to bring this “Mahendran” to head the CB. The very decision and action to bring the CB under his control looks like a very “calculated” move. This was very clearly stated by the very “spokesman” of the Cabinet – Dr. Rajitha Senaratne when he participated in “SATANA” programme conducted by the Sirasa TV. He said: “I objected to Mahendran’s appointment”. When the President wanted to get Mahendran to resign, RW did not take any action, which means he is not a person amenable to any consultative process. This inborn quality was displayed when he appointed the Chairman and the Board of Directors to the SriLankan Airline and subsequently “depositing’ the “Waliamuna Report” in the “Dust Bin”. RW, of course openly states that when he forms the next Government, the entire assembly would be converted to “Committee” of administration. What nonsense is that? Even if he does it, “HE” (RW) will have have his own SAY over all matters and will end in a worse “disaster” and will never take any action to proceed “forward” from where we are today. In my opinion he is a “FAILED LEADER”. Period.

    • 2

      Absolutely well said I can’t understand why people think so highly of RW. He is a liability to this country!

  • 10

    Fully agree Douglas. Ranil a leader ? hunched,pot-belly, squeaky voice, arrogant, over=-estimating himself, only in a sorry country like sri lanka will such a man be a leader of a political party.
    The latest is that if Ranil wins-Malik samarawickrema will be Minister of Finance and Tilak maropane the minister of Defence.All please stand up when ranil walks in and sing the royal college anthem!
    Please dont demean your selves by voting for Ranil !

  • 11

    I present a copy of the email I received on the bond issue, authored by Mr.Tissa jayaweera:

    “Subject: The Central Bank 30 Year Bond Issue – Contributed by Mr. Tissa Jayaweera

    I have 2 questions for
    the individuals who say “Bond Scam, Bond
    Scam” .

    Q1 :
    Explain to me where is the scam in the bond issue.

    Q2 :
    Who stole the money?

    Now come the pundits, be reminded that 145 Members and
    Ministers of our parliament under UPFA have not passed the A’ levels, and of that 95 so called pundits who ran our country for 10 years do not have O’ Levels.

    These are the parliamentarians who are Crying “Scam, Scam, Scam.

    Let me quote some of them.

    Bandula Gunewardene:

    This is the Minister under UPFA who said that Rs. 2500.00 a month is enough for a family of four to live comfortably in Sri Lanka (Where did he come upwith this figure??).

    He has said the loss in the 30 year bond issue Rs.50 billion.

    How did he come up with this figure only God knows.

    The guy who can’t calculate the stipend for a family of 4 to live in Sri Lanka, is now talking about bonds and in billions.

    Even a Tri-Shaw driver will tell you how much it costs a family of 4 for a month.

    Wimal Weerawansa:
    I don’t have to write to you about his and his wife’s fraud, lies and deserting the JVP to rob the public with the UPFA.

    He says the loss is 30 Billion.

    Well these guys seem to pluck these figures from air… Airheads do

    Nivard Cabraal:
    The most corrupt Governor that Central Bank ever had.

    This shameless human being (if you can call him one), manipulated EPF funds to fatten the purses of the stock market manipulators.

    While we are on the issue of bonds, this is the ignorant Governor who
    invested billions in Greek Bonds knowing that Greece was going bankrupt.

    Greece defaulted on the interest payable to IMF on monies borrowed.
    What about the principal and interest owed to Sri Lanka?

    Because of the buffoon Nivard Cabraal we may not see the colour of it.

    These are some of the public lunatics that I have quoted.

    The actual picture of the 30 year bond that was issued on the 27th of
    February, 2015.

    Why did this bond issue run into controversy?

    The one and only reason is because the bid was to be 1 billion, but the bids were raised and accepted to 10 billion.

    So what happens when the bids are raised?

    The average return was also driven up because of the excess uptake from 1 billion to 10 billion.

    It is understandable if the public outcry is for 2 reasons.

    The high increase in the issue (10 Bill), which also will give a higher
    interest rate.

    The largest beneficiary of the issue was a company closely connected to
    the sitting Governor.

    Creating a conflict of interest:

    Sri Lanka doesn’t have any rules on who you should award an issue
    or for that matter any tender.

    Then came the uneducated politicians, and the ignorant economist on all media, so called journalists jumped on board to calculate the loss.

    Unfortunately the contributions published do not take into account 3 most critical aspects required to calculate the exact loss.
    You need to compute the value so that you are in the present .
    You can’t add present monies to future monies , this “no, no” situation
    when you compute time value money.

    So what is Computing time value money?

    If a person loses Rs.1000.00 today and the interest rate was 10.4%, it is the same as losing Rs.2000.00 in 7 years, or Rs.4000 in 14 years
    ( This is called the rule of 72 .

    If you take 72 and divide by the rate of interest, in this case 10.4, it will give you the time it takes to double the money, through compounding interest).

    Therefore losing Rs.1000 today and losing Rs.4000.00 in 14 years, is not the same as losing Rs. 5000.00 (1000+4000) today, but
    it is the same as losing 2000.00 today.

    The time-value of money is a basic and core principle of financial calculations, and the newspaper articles and the politicians HAVE IGNORED IT.

    I am sure they don’t know it.

    The result has been the erroneous calculations that add up money due in 20 and 30 years with money due in the present year, without discounting FUTURE payments to the present value.


    Inaccurate Stipulation of the base rate:

    All calculations of loss are based on estimating the “Extra Interest” that was paid for the 30 year bond …”

    Dr.Rajasingham Narendran

    • 7

      Could not agree with you more. Thanks you for writing this long but necessary piece. One thing I wish to re iterate is that it is not illegal to award the bonds to the largest beneficiary on the grounds that the governor’s relative is connected to it. No such rule exists to be violated.

    • 8


      Mr. Tissa Jayaweera is using technical smoke and mirrors to confuse the non-technical minded. By non technical minded I mean those who dont know about, discounting a series of future cash flows to a present value, discount factors, risk free rates and forward interest rate/yield curves.

      If Harsha de Silva makes this kind of claim it would fine. However he is honest enough not falsify technical issues. However Harsha de Silva is not honest to the point of the truth and nothing but the whole truth. See the Greek Bonds claim for the example.

      Just a couple of points.
      a) When discounting future cash flows, a set of risk less rates are used. You do not use a single rate for 30 years.

      b) The risk less rate is not the Sri Lankan Treasury rates (i.e. 10.4%). The Sri Lankan treasury rate has credit component, i.e an extra interest to compensate for the likelihood of default by the SL govt.

      c) The risk free interest curve used to be based on LIBOR and Swaps. Now the curve is created using Overnight Indexed Swaps etc. For most purposes the US Treasury curve is sufficient. The current yield curve ranges from 0.01 to about 3.1% in the long end.

      Mr Tissa Jayaweera has also not discussed why a 30 year issue as against a short term Bond Issue.
      In a country that has to issue debt
      a) If High interest rates now (most other countries it is less than 5%)
      b) Economy is growing
      Then short term 5 year bonds are issued.
      The debt is rolled over at 5 year intervals with expectaion of lower interest rates in the future.

      Finally, the Greek Bonds Issue.
      Harsha de Silva too was taking issue on the Greek Bonds being a loss. Like I said, Harsha de Silva was only saying a partial truth. Yes, the value of the Greek Bonds have gone down. However, the interest on its treasury bonds is still being paid in full. So no realized loss on the Greek bonds.

      Yes, Greece defaulted on its IMF payments. However defaults on IMF payments is not considered sovereign default.

      If Greece defaults on its Treasury Bond payments, thats a Sovereign Default. That will trigger a tsunami of Credit Default Swaps.

      The US and Europe will do everything possible to ensure Greece makes it Bond payments. Even if means giving Greece the money in a brown paper bag.

      Thats because there are billions of Credit Default Swaps against Greece (and other EU countries such as Italy and Spain). As I said triggering these CDS will be Financial Tsunami and will make 2008 look like a piece of case.

      Non payment of interest by Greece will be the least of Sri Lankas and the Worlds worries.

      • 1

        You sound like Nivaard Cabal’s mouthpiece. How much does he pay you?

        • 2

          Is that all you can come up with?

      • 2


        Thanks. I hope Tissa Jayaweera will respond. Many like me would like to understand the issue better.


    • 9

      You are singing for your supper with Ranil too?
      You are stirring the pot and confusing the mater. The question is CB Governor gave it to his son in law without telling anyone else. End of story. No need for such big lengthy words and this is understood even if they don’t have a PHD like you.

      • 1


    • 2

      Dr Narendran,

      How much is 3% of 9 Billion over 360 Months in total ?

      And what does that work out to be per month?…

    • 1

      These two questions reminds me of the story about the person who listned to the Rama Seetha story all night and in the morning asked who is Rama to Seethaa.

  • 7

    Is this the official COPE report? Has this been signed all members of this committee? This draft document purportedly released after dissolution of parliament to sling mud at Ranil. If Ranil is the culprit why was he not summoned to the enquiry at COPE?
    Ranil is a honest person who is not building a family empire and he together with President Mythree is going to bring this country to be a modern democratic society with economic development for the people and not to a few privileged.

    • 7

      Read the article, its straight from the horses mouth, no need to do a COPE and try to confuse things. Ranil is guilty as sin and nothing you can say or do (including pointing out the faults of Rajapakse) will work.

    • 2

      I have just one question for you.. If ranil is such an honest man.. why does he give RK the countries biggest crook and liar so much prominence and also put him in charge of such an important ministry. ???

  • 1

    If Ranil is the culprit why was he not summoned to the enquiry at COPE? Ranil is a honest person who is not building a family empire and he together with President Mythree is going to bring this country to be a modern democratic society with economic development for the people and not to a few privileged.

  • 2

    The interview of Arjuna Mahendran, Governor of Central Bank is fairly comprehensive – he comes across as a person of integrity.


  • 1

    Ranil W’s theme song:

    Pop Goes the Weasel

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