30 November, 2020

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The 30 Year Bond Issue By The CB Governor – The Issues Involved

By R.M.B Senanayake

R.M.B Senanayake

R.M.B Senanayake

The Central Bank Governor has admitted that there was a failure by him to communicate with the market. Financial markets operate on information which is why the leakage of inside information and trading on insider information are considered criminal offences in financial markets. Raj Rajaratnam was caught and jailed in USA for this offence as did several others before. But such offences have gone unpunished in the local stock market despite the efforts of Mr. Tilak Karunaratne the former Chairman of the SEC. Rogue traders got rid of him and carried on with impunity. Why Inside information disclosure and trading on such information is treated as crimes is because the gains of one person is a loss to others. Financial market profits are a zero sum game as economists point out.

The Primary Dealers were created by a former Governor ( A.S. Jayawardene I think) because the banks which took up all the Treasury bond and bill issues did not show any enthusiasm to market them to the public. This has implications for monetary policy since holdings by banks is money printing while holdings by the public come from genuine savings of the people. The market was a creation of the Central Bank and the Bank nourished and supported it. The Central Bank was not concerned only with the rate of interest but also to gather the maximum amount possible for the government. If it was only interested in a competitive price it should limit the issue to about Rs 500 million which is the capacity of the market. Some one might say that the primary dealers have made bids for much more. But many of those bids at high interest rates are spurious and they submit them without expecting them to be expected.

ArjunaThe Tender is not a public auction with open outcry as used to prevail in the stock market prior to electronic trading. Nor is it a private placement. The quantity on offer is always beyond the capacity of any individual primary dealer. Only the banks would have the capacity to bid for high quantities but the primary dealers have to be sustained if the objective of monetary policy to tap the savings of the public through the creation of a secondary market in the bonds is to be achieved. It is therefore not a public auction where the Central Bank is interested in obtaining the most price and not the volume. It wants both the maximum volume at the best prices. So the Central Bank has been guiding the market to bid at levels which the Bank thought were acceptable. So the Public Debt Department contacts the primary dealers and guides them about the acceptable range of interest rates. The bank gives guidance on the range of interest rates acceptable to it. Somebody has misunderstood the working of the process and thought the Central Bank is only interested in getting the most competitive price.

What then was the information available to the Primary dealers who tendered for the 30 year Bond issue? The Monetary Board of the Central Bank met on the 24th February and issued a monetary policy statement saying there will be no change in monetary policy and hence interest rates will be unchanged. The 30 year bond issue was shortly thereafter. Incidentally this Bond issue gave short notice. Generally the Public Debt Department of the Central bank indicates to the Primary Dealers what they have in mind for the interest rates to be quoted for the Bonds. On this occasion too the primary dealers say the Public Debt Department of the Central Bank contacted them over the phone canvassing bids for the above auction around the previous market rate of around 9.35% and 9.75% range.

The Committee should examine the bids made by the several primary dealers. Perpetual Treasuries seems to have put several bids of : Rs 500 million; 1 billion and also Rs 3 billion through the Bank of Ceylon on their behalf. Their bids have ranged from 11.25 to 12.50%. They have put high bids despite the counsel by the Public Debt Department indicating that their interest ranged from 9.35% to 9.75%. The Central Bank for some inexplicable reason and despite the earlier counsel of the Public Debt Department, accepted bids for Rs 10 billion and went up to 12.5%. All of the bids of Perpetual Treasuries seems to have been accepted. According to some Primary Dealers, the Central Bank could have taken up to Rs 4 billion at the previous rates without pushing up the interest rates to 12.5%. Why did the Bank not do so?

Immediately after this Bond issue the Central Bank which had earlier announced no change in monetary policy stance has changed its mind. There was a penal rate under the Standing Facility with the Central bank where banks depositing money would be paid a lower rate of 5% or so whereas the usual rate was 6.5% for deposit only for 3 days for the month. The Central Bank did away with this penal rate reflecting a change in interest rate outlook. Secondary market Treasury bond rates were then trading at low yields due to above market sentiments and the monetary policy directions. 30 year bonds also traded around 9.35% and 9.75% range and the Central Bank private placements were also done at these rates.

But shortly thereafter the Central Bank allowed the Treasury Bill rate at the primary auctions also to rise by about 1% or so. So did the Monetary Board mislead the market about no change in the monetary policy stance?

The Bond issue was for Rs 1 billion and a similar bond had been issued not very much earlier for a rate of about 9.5%. Why did the Public Debt Department decide on Rs 1 billion instead of Rs 10 billion for the issue? Because they are well aware of the capacity of the market. The number of primary dealers is few and each has a paid up capital of Rs 300 million. It is only those primary dealers who are themselves banks or connected to banks who can raise sufficient funds to buy a large quantity of the bond issue. Otherwise each primary dealer will quote for about 10% of the issue. Often they put bids at high rates of interest which they don’t expect to win. They need to show the funds by settlement date and the Central bank has on line access to their bank accounts.

How much in the aggregate did Perpetual Treasuries quote for on this occasion and was it higher than their usual average in the past? The Committee should scrutinize them. The Bank of Ceylon has also quoted for Rs 3 billion of the bonds on behalf of Perpetual Treasuries. This too needs to be probed.

The bids are normally based on market practice and the constraints on the Central Bank. The Treasury needs endless money all the time and the Public Debt Department knows it too well. But Treasury Bonds are not the only form of borrowings. There are the Treasury Bills of short term duration for which the Bank holds an auction every Wednesday. The Bank also has the authority to make provisional advances to the Treasury. The DST account in the Bank of Ceylon can also overdraw. So the need for extra money is no excuse for increasing the size of the bond issue. In fact after this issue too there have been bond issues where the Central Bank has paid much less than the 12.5% paid on this issue to Perpetual Treasuries and has borrowed much more than the Rs 10 billion. I think the Bank has borrowed about Rs 75 billion in 3 auctions by 15/3/15.by way of 7 year, 10 year and 20 year bonds at much lower rates of interest. The Committee should review them.

The Public Debt Department is conscious of the need to keep down the interest rates at which it raises money for the Treasury. Incidentally central banks in some developed countries have entrusted the public debt management function to an independent agency outside the Central Bank for there is a possible conflict of interest in the Central Bank carrying out this function along with its main function to determine monetary policy .In fact in developed countries even the management of the National Provident Fund is not vested in the Central Bank.

Be that as it may the primary market dealers know that the Central Bank would prefer to carry on with a low interest rate policy to promote private sector investment which is required to sustain economic growth and this was the declared monetary policy up to the issue of the 30 year bond. The Primary Dealers also know that the Central Bank will not want to raise interest rates steeply over a very short time. Any increase in interest rates they expect to be gradual and in short spurts.

The Primary Market Dealers are the creatures of the Central Bank. This market did not develop spontaneously. A previous Governor promoted the primary dealers as an adjunct of the Central Bank to assist it to place Treasury securities with the public. So the Central Bank was not expected to harm the market in a way to cause financial losses to the primary market dealers. But the primary dealers say they sustained losses owing to the new procedure.

There is an inverse relationship between the interest rates on the bonds (the yields) and the bond prices. When interest rates on new issues go up the prices of bonds in the market fall. But the primary market dealers hold bonds in their portfolios bought earlier at prices which reflected the interest rates which prevailed then. They offer them to the public. Since the interest rates were then lower their bond prices would have been higher. Now when the Central Bank raises’ the interest rates on the new issue of bonds the prices of existing bonds in the portfolios of the primary dealers fall from their previous levels and they sustain unrealized losses. The Committee must find out how much were those losses. Such losses may not matter to those who are permanent holders of the long term bonds for they will hold them to maturity to enjoy the interest. They generally do not trade in them although they could do so if they wished. But primary dealers and brokers suffer losses because the secondary market bond prices fall from their earlier levels. They have to sell some of these bonds in order to invest in the new bond issue. If their bids are accepted they would need to sell them to raise the funds to accept their bids. They would then lose money. These primary dealers are up in arms owing to this predicament they were placed in by the Central Bank.

Enter Perpetual Investments another primary dealer. The primary dealers make their bids knowing the thinking of the Central Bank which will not want to increase interest rates too steeply. So it is this same piece of information which will guide them in making their bids for the new issue. But they have made high bids ranging from 11.25% to 12.50%. Did they expect them to be accepted? The Committee should look at their bids and those of others who have access to the same information and decide what made Perpetual Treasuries to quote much higher? They too would have to sell their holdings of bonds in whole or part to raise the funds to accept their bids if they were selected. One writer says “There are rumors in the market that also, during the last week several 5-10 year bonds at prevailing rates were sold by CB Governor’s son in law Arjuna’s company and reinvested in the 30 year bond, because he had inside information from the Central Bank that the rates would go up to 12.5%.”

The Committee should find out the sales made by Perpetual Treasuries after the bond issue was announced by the Central Bank. The grapevine says they sold their portfolio of low interest bonds in the market and even sold short in the forward market. The latter would definitely raise suspicion. The Committee must scrutinize their transactions from their bond portfolios and also check if the Bank of Ceylon came to an arrangement with them to tender for part of the issue? Did Perpetual make profits or suffer losses? According to the other primary dealers the profit Perpetual Treasuries could have made from a single transaction could be more than Rs. 200 million and his gain is a loss to the Government and the other Primary Dealers. They would definitely have made large profits which the Committee must find out. In financial markets one man’s gain is another man’s loss although it is not apparent to the ordinary public. Economists call it a zero sum game. It is the same with the stock market which is why insider trading is a crime for it amounts to cheating others.

The Primary Market Dealers are appointed by the Central Bank and are licensed and supervised by the Central Bank. It is the duty of the authorities to ascertain if there was insider trading. The market which consists of the primary dealers is fragile and needs to be sustained and developed by the Central Bank. That was the role of previous Governors like A.S Jayawardene.The Central Bank should have considered the size of the market and the financial capacity of the non-bank primary dealers in deciding on the size of the issue and the amount to be awarded. If it took a larger amount without raising the interest rates there would have been no objection. But how can it justify raising interest rates so steeply from the existing rate on long term bonds and causing losses to the primary dealers except Perpetual.

Economists agree that a Central Bank cannot control long term interest rates but only the short term rates. The Bank has given a wrong signal to the market and it will lead to over-all increases in the lending rates in the banks and other financial institutions. The Central Bank by its unorthodox action has disturbed the entire structure of interest rates which will be detrimental to economic growth by the private sector investments. The government too would have a greater interest burden which is quite unwarranted. The conduct of the Central Bank is a flagrant departure from monetary policy orthodoxy.

Central Bank could have collected 30 year funds at a much lower rate if the auction was conducted properly and also avoided the increase in the treasury bill rates at the next auction to such a magnitude. Therefore this has resulted in Government paying more for long term as well as short term funds.

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Latest comments

  • 15
    2

    Thank you Mr.Senanayake for a lucid explanation. What was the role of the Bank of Ceylon in the Perpetual Bid?
    Are you a lawyer? The Prime Minister seems to think that only his hand picked Perry Masons are up to it.
    I went to see Mr.A.S. Jayawardene this morning. He is in frail health. I did not wish to engage him on the subject.

  • 14
    6

    Sir, however you try to explan this sinario to the public you will not win. The Govner’s job is a political appointment and he was hand picked by The Primeinister. The post is open and subjected to the political tensions therefore the Govnor should have made sure that every possible avenue is scrutinised and made sqeeky clean. He simply cannot limp along when this perception of skull thuggery is hanging over his head. Even if he is cleared by the investigating committee people will not believe him. The public’s perception of his integrity and honesty unfortunately is sevealy damaged due to this saga. If he remains against all the odds he will be limping along and will damage the credibility of the Primenister and the current goverment.

  • 15
    6

    CBSL governor has to go and no discussion is required.

    The bonds should be cancelled and re tendered.

    Very simple.

    Unfortunately during yahapalanaya these things will not happen!!!

  • 14
    22

    A commplicated subject lucidly explained. It is men like Mr.Senanayake who should study the expected report and comment on its acceptability. The PM has vigorously defended the capability of the men he has appointed to the inquiring committee and we have to respect his judgement. Further, Arjuna Mahendran is innocent until proven guilty. It was proper that he has taken leave of absence, until the inquiries are over. Good governance also requires that persons are not vilified and crucified outside the parameters of due process. Reputations built over a lifetime should not be sullied or destroyed on the basis of mere suspicions or uninformed public comments. The freedom to report, comment and criticise NOW should not be abused. It should not become a donkey’s freedom to bray, kick, buck and meander.

    Dr.Rajasingham Narendran

    • 21
      8

      Naren you are wrong on this matter.

      I am not challenging your expertise on the Donkey and it’s abilities of what it can do and can’t do. You are the Vet and not us.

      However, if some politician appoints the Governor of the Bank, which in this case is the Prime Minister himself and his deputy minister Harsha De Silva, and public servants behaves like Donkeys then the public and the tax payers have the right to comment and complain. This is not only behaving like donkeys but acting as Crooks and Fraudsters.

      Due to this the UNP and the GOSL are not constrained to talk about “Good Governance”, Cronyism, Nepotism, Family Bandyism, Bribery and Corruption.

      “You wrote” – Quote Further, Arjuna Mahendran is innocent until proven guilty”.
      Fair enough. So are Cabraal, Namal/basil/Gota, Mahinda Rajapakse, The entire Rajapakse Clan, friends, family, relatives, employees and catchers. So what is the point you are trying to make here? The GOSL, UNP, and the public should be like donkeys or Mutts and keep quiet until Arjuna Mahendran and his son in law are investigated, fully investigated by competent professionals, Attorney General to file action and prosecute both of them in courts, appeals courts and the Supreme Courts? Then if and when they are found guilty and punished or jailed, then the donkeys can comment or bray.

      How many years that will take and until the Arjuna Mahendran should continue his merry way and practice his activities corrupt or not as the Governor of the Central Bank and and Aloysious as the owner of Bond Trading Company? Isn’t that a ridiculous and stupid suggestion to the public and readers of the CT?

      Let me inform you Naren we are all not Donkeys.
      And we will not remain silent. And those who worked very hard and risked much to change the former tyrannical regime of State Terrorist to bring down the Prime Minister by a bunch of political appointees.

      Do you all also aware that Arjuna Mahendran is living with Arjun Aloysious and family (Or Vice versa) in colombo 7, despite a CB Governor has been given a palatial Bungalow with full facilities in Bullers Road with an acre of land? So those who are looking high and low for telephone records, Texts and witnesses just abandon that idea, and look for flies on the wall. lol.

      Donald Gnanakone
      Tamils For Justice

    • 6
      1

      ” Good governance also requires that persons are not vilified and crucified outside the parameters of due process”

      True, but when good governance is infringed by persons holding responsibility and accountability by acting outside the parameters of due process then such persons have to face the consequences for permitting that transgression, and cannot hide or duck the charges levelled, especially when that default is glaringly obvious.

    • 0
      0

      Committee appointed by PM to probe the Bond deals was suspected to be bias from the very beginning. To quote a trite phrase justice must not only be done but must appear to be done. And this is where PM has failed. It is a black mark on the govt.

  • 11
    1

    RMB- this is a detailed useful explanation of the procedures used by CB in raising public debt and of the issues involved. It seems quite clear that the knowledge about the higher than advertised bond limit of Rs 10b was with Perpetual only and this must be the clincher that insider information was passed. It may well be that AM himself did not pass on this information to Perpetua, nor that CB would accept an interest rate well above the norm. Nonetheless this information must have flowed from the CB to Perpetual and the official concerned, if not AM, would have done so because this was S I L and not some greedy trader, perhaps gently persuaded by S I L himself. This then comes to the issue of conflict of interest which AM and RW have blithely brushed away. Aware of the family connections as he does RW’s choice of Governor reflects extremely poor judgement. His defence of AM, his committee meanders into irrelevance and is surely inappropriate when an enquiry is underway. I cannot understand why my3 remains silent on this major incident, nor why he has not insisted on appointing his committee.

  • 14
    2

    The substance of RMB’s analysis, of a civic-responsibility nature,
    makes it fairly clear Mahendran has acted mala fide for the parochial and personal interest of his near kin. I am aware a Committee is sitting presently and it may be improper to caste aspersions to influence its judgement. But the irreparable damage appears to have been done. At least in fairness to the Sirisena-Ranil regime they have
    immediately responded to public protests and have not, in the Rajapakse style, swept the matter under the carpet with that pathetic excuse and mindless grin “apey minissu api shape keranta oney ne?”

    Backlash

    • 9
      4

      I am sure they will “shape” it up , don’t you worry. Only difference is that Ranil does in a more sophisticated manner !

  • 12
    6

    The PM can wax eloquently on his committee, but it does not change the fact that they are UNP lawyers through and through !

  • 18
    4

    Mahendran motivating and energizing the Rajapakses, Anti Sirisena/Chandrika and Ranil forces.

    http://www.dailymirror.lk/66695/slfp-mps-protest-outside-central-bank

    What a big contribution is Mahendran making to the return of the Rajapakses to power.
    Much better than Emilkanthan and his son in law has already made a billion rupees or more. Wow. How much did Emilkanthan make?

    This is a crazy situation and the President, Chandrika and Ranil should act for their own good as well as the Bank’s well being.

    Donald Gnanakone

  • 7
    3

    Good explanation of the working of the Bonds Issue. This is what the ordinary citizens mus be told. In reading through, one will understand that this whole issue needs much more “inquiry knowledge” of the working system of the Central Bank of Sri Lanka in regard to Bonds Issue. That is why I said elsewhere that the three “Lawyers” appointed are not the most capable and competent to inquire into allegations of this nature. We have enough of “Banking Sector” expertise to sit in an inquiry of this nature. Had PM done that in consultation with such knowledgeable people, he would not have made that wrong decision. That is “fishy”.

    Then on the other hand, having taken the initial step of appointing an inquiry panel, rise in Parliament to make a statement on the same subject under inquiry? That is uncalled for. He should have avoided that and wait for the outcome of the investigation. That too is “fishy” and uncalled for. That is not the way to defend your own selection of the CB Chief. This action has created more questions than answers for him and his credibility.

    • 2
      6

      Douglas,

      Your slip is showing. You normally attack the UNP and Ranil Wickremasinghe in particular. There is nothing fishy in appointing three Lawyers as Ranil explained that if the matter is forwarded to Courts, it will will not be argued by Bankers but Lawyers. Therefore do not display your ignorance.

      You must be smarting that Ranil explained the issue in detail to the parliament that you people can not distort and ridicule Ranil now. Ranil has categorically stated he will table the Report in Parliament and even appoint a Select Committee to probe in addition, unlike your idol MR. What poor losers you all are? What I can say to all critics of Ranil is that you all are like the proverbial foxes waiting for the oats of the goat to fall, that will never happen. Good Luck!

      I advise all to see the video of Ranil addressing the parliament on 17/03/2015. on this matter.

      • 5
        2

        Commenting on this quote by gamini “There is nothing fishy in appointing three Lawyers as Ranil explained that if the matter is forwarded to Courts, it will will not be argued by Bankers but Lawyers”
        Yes, arguments may be by lawyers, but it is gentlemen with experience in financial matters that can decide the rights and wrongs of this transaction and produce such evidence that it may be argued in a court of law.
        It is well known that lawyers require a comprehensive brief to argue their case.
        So this panel is not justifiable.
        furthermore it took intense lobbying for AM to take a leave of absence for the inquiry. A True Gent would have resigned or taken a leave of absence as soon as the issue arose.

        • 3
          0

          “A True Gent”

          They don’t exist in politics and business in this country, sadly.

          This will all be shaped up I am sure :-)

          Its business as usual, nothing to see here.

  • 3
    8

    Reading all comments for and against and the circumstances that have led to the event is indeed an intrigue. I find it difficult to believe that Ranil Wickremasinghe would have appointed Arjun Mahendran to the post of Governor Central Bank if he was a shady character, to begin with. Besides to believe that this would have gone unnoticed, is also difficult to believe. Then what is the rationale for this gross blunder to have been committed, knowing fully well of the consequences as has resulted. Is it something that have been preplanned knowing fully well it will land at Ranil’s feet to discredit him? Ranil would have never allowed something like this to happen under his governance if he had prior knowledge. It is said that AM had no hand in increasing the interest rate from 9% to 11%. What is intriguing is, was Ranil aware that AM’s s-i-l Alosyous was a bidder for the Bonds? Was it prior knowledge that Alosyous had indulged in this type of deal with Nevard Cabral and Namal Rajapakse previously? Did Nevard Cabral have a hand in this through his cronies at the Central Bank to set this up? Did Alosyous trap Arjun Mahendran for a bigger payment from Nevard Cabral and MR crowd, to ridicule Ranil Wickremasinghe? These are issues to ponder for the Committee investigating the matter. It looks too good to be true for this scandal to erupt in isolation and for it to pass without the knowledge of the public. Ranil and Maithri should be mindful of the pitfalls like this, to be the handy work of those who want to sabotage.

    • 12
      1

      If I didn’t live in Sri Lanka and didn’t know the history of the country and I read your comment I would think RW is the greatest human to walk the earth.

      You make him sound infallible and above reproach.

      He is not I am afraid. He like all politicians we have been blessed with are crooks.

      Yes, he might not be bad as the ones we had but nevertheless he is a crook like them all.

      • 0
        4

        Robert,
        I fail to understand your Logic. You say

        ‘Yes, he might not be bad as the ones we had but nevertheless he is a crook like them all’

        You admit Ranil to be not in the class of the former Crooks. Yet you contradict yourself by stating that he is one of them.

        How honest you are? is only known to yourself. As for Ranil Wickremasinghe even in this case which is very unfortunate, Ranil has not embezzled or stood to gain financially. It is a sad indictment of the very society we live in where, finding 224 honest individuals to represent 20 million people is an issue to all. Just imagine in such a scenario the task before Ranil to find such suitable people. So it is natural such issues happening till the bad eggs are discovered. What has to be admired of Ranil Wickremasinghe is unlike MR, he never tries to sweep under the carpet and save such as ‘Apey Minissu’ like MR and CBK did.

  • 3
    7

    In the US, penalties for insider dealings are:
    Confiscation of assets held by those involved, including personal property
    Extensive fines.
    Imprisonment.
    Invaliding the business undertaken through insider dealing.
    Preventing them from any future government business.
    Withdrawing their licenses to undertake any business.

    I think everyone involved in this game should be dealt with similarly.

  • 5
    2

    Why 3 % hike when the issue is subscribed 10 times over?.

    Is it ethical to get the S I L to bid even at the normal rate, when our unelected PM came to give the inhabitants, Nepotism,Corruption and Commissions free Good Governance?.

    How much did Donald say the S I L make?…

  • 4
    2

    It is a fact that this man Mahendran did not know the tricks of the trade. Lost his credibility and his credentials are questioned by the people. In this scenario, it is advisable for the govt.to remove him
    from this position, even if the investigators want him to continue unless he is proven that he is 100% not guilty and the govt. did not lose any money, unnecessarily, because of his ignorance and inside information was the cause for this debacle. Even then, he did not take enough precaution to protect state secrets from intruders as a financial bigwig.He himself has admitted that he failed to communicate fully with the market, which means that he could have favoured some One

    Mr. Mahendran should willing give up the position and if he wants to remain,with the support of the PM, he will be blocking the prospects of Tamils who have come up the ladder to accept senior positions in the govt. sector. You are not playing fair by the PM and President, who are under attack from all corners on this issue.During the former regime, Tamils could not come up as they were all classed as Ltte sympathizers and now they will be classed as crooks, an easy way of segregation.
    You are not an ordinary Kandiah or Suppiah to depend on a monthly salary. You are living in wealth and you should come forward with
    your resignation letter as a gentleman if you feel that you have failed in your duties.

    • 2
      1

      I am one who would like to foster ethnic harmony and avoid stereo-typing. There were times that the Tamils in this country were looked down upon as “Demala”. With certain indiscretions in the University sector, particularly with A-Level practicals in the yester-year there was another label attached to it bearing in mind that the number of miscreants just a fistful but the entire ethnic group was given a label.

      I fully agree with the commentator that in the recent past any Tamil was viewed as a potential LTTEer. With this fiasco I sincerely hope they would not be labelled as “Loka Hora” implying that crooks of the highest order.

      I agree that Mahendran has sacrificed a lot in coming here. It looks as if he cannot go back because of this taint. But the reputation of the PM is also at stake. A majority of voters booted Jarapassa out recently and with this those who were evicted may now get a place. Clearly Mahendran must accept the flak for not controlling his kith and kin so as to give rise to this present situation.

      Considering the totality of circumstances let Mahendran step down with grace. If any credible inquiry (not that lawyers combine) clears Mahendran then let him be given another decent position.

  • 2
    0

    Thank you RMB for the simple and clear explanation of events. We ourselves can judge the abnormalities that went on with the reading of your article.

    Nobody in the past has accused the RW in the past of scams but more he defends Arjuna his image is going down the pallang.

  • 1
    15

    Donald,
    Why are you so concerned about Mahendran .
    He’s a Tamil too?
    You claim to be ‘Founder, Justice for Tamils’.
    Aren’t you happy that one of yours is in such a high position?
    Also it is none of your business, with whom or where he chooses to live.
    You must be knowing him, to know so many details.

    • 13
      3

      Suresh,

      Do you know your[Edited out]

      It is none of your bloody business that I am concerned of another foreigner who happens to be a Tamil, and who cannot speak Tamil.

      Mahendran was appointed not because he was a Tamil. It is not because he was living with the Bond Trader who deals and wheels with the Central Bank and might provide some help and guidance to the Governor of the Central Bank.

      For all that matters Mahendran could be a Chinese from Singapore or China speaking Mandarin as well and still he would have appointed him as the Governor.

      Of course I know Mahendran very well and [Edited out]
      Have you ever heard of Cronyism, Nepotism, Family Bandyism, Bribery and corruption. The Rajapakses have been accused of such allegations and quite rightly so. Therefore, I need not be silent, nor be silenced by his crazy wife [Edited out]

      Suresh, you are barking at the wrong bloody tree, you stinking coward. I did not only claim that I am the founder of Tamils For Justice. I am THE Founder of Tamils For Justice.

      It is they and you who need to shut The [Edited out]

      Mahendran is a [Edited out]

      Donald Gnanakone
      Tamils For Justice
      Founder.

  • 2
    0

    A very big thank you to Mr Senanayake for a very lucid explanation of the issues concerned. We look forward to reading Mr. Wijeywardena’s analysis in the coming days.

    Unfortunately it seems RW is committing the same mistakes he did back in 2005. Surrounding himself with a mini version of the RC Old Boys’ Union and other shady characters. It is reported that the Euro MP Deva Adithiya, a well known wheeler dealer has been appointed a director of Sri Lankan Airlines, Paskaralingam has been brought back ( he must be at least 80 yrs old ?) and poor Ronnie de Mel the whizz kid of the 70/80 period. 35 yrs later what is his role ?

    President My3 should assert himself.

  • 1
    6

    When I read Mr.Gnanakone mounting a defense based on the principle of ‘Innocent until proven guilty’ I almost fell off of my chair!

    • 11
      3

      Upul, I was responding to Naren or someone talking about being innocent until proven guilty.

      If that is the case are we supporting the same theory for Cabraal, Emilkanthan, and all the Rajapakses and Silvas?

      I suggest you read the two comments without jumping into wrong conclusions.
      Or are you having language comprehension problems?

      Donald Gnanakone
      Tamils for Justice.

  • 2
    9

    Gnanakone will fall off his own chair anytime soon on his own.
    Is he not aware that neither the president nor his friend the Prime Minister live in state luxuries!
    Those days are gone, Donald, as you should well be aware of!

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    There should be a wide spread debate on the subject of bonds. The systems discussed in the news seem open to coruption. The variance on previous purchases prove it. Long time purchasing may have to pay a lager interest. The Governor has the right to change the system as he had the backing of the minster. Structural adjustment is needed to evolve a better system. to improve you it has a cost. Advising the buyer and giving him leeway is open to corruption. Cash flow planning to optimise purchases is necessary. Change is responsible for not establishing money requierements. Waiting for low interest funding by IMF and restructuring of Loans caused this error in cash flow planning. Mr Mahendras past speaks for himself. However Mr Cabral may have had access to information leaked to his friend and partner in deals m s son in law. There many insiders in the present government who are in laege with the previous regime. An early election to pass laws to appoint senoir s by Parliment select commitee is nesecary. Immidiate steps tpo prevent contesting seats by the corrupt is most important. Mr President we hope you will seak a mandate and reccomend the honest.

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