“The Governor of the Central Bank, Arjuna Mahendran has denied that he participated in the decision to take Rs 10 billion instead of Rs 1 billion, the amount for which offers were called. In that case the members of the Committee should be called upon to explain why they took Rs 10 billion at a higher rate of interest from the same tender knowing well from their fast experience that they could borrow cheaper at the following tender the next week. In fact the interest rate was less in the very next tender. ” says a former Secretary to the Ministry of Finance, R.M.B Senanayake.
The three-member committee appointed by Prime Minister Ranil Wickremesinghe to probe into the controversy that has emerged over the issuance of Treasury Bonds has said that the Central Bank Governor Arjuna Mahendran had no direct role in deciding to accept bids over and above the one billion rupees stipulated in the 30-year bond tender and accept up to 10 billion rupees.
R.M.B Senanayake, who was a member of the former Ceylon Civil Service told Colombo Telegraph; “The Minister of Finance should call upon the Monetary Board to call for the explanation of the Members of the Public Debt Committee to justify their decision. The Minister of Finance should direct the Monetary Board to do so.”
The Central Bank now directly comes under Ranil Wickremesinghe‘s Economic Affairs and Policy Planning Ministry.