Sri Lanka Policy Planning ministry issued a statement on bond auction : Alleged malpractices to be probe

Mar 07, 2015 (LBO) – Sri Lanka’s Ministry of Policy Planning and Economic affairs has issued a statement on the controversial bond auction and said that the government would investigate on alleged malpractices which are taking place at the Public Debt Department during bond auctions and private placements. It will also investigate the alleged malpractices which are taking place at the Public Debt Department during bond auctions and private placements, The statement said.

The ministry said that many stakeholders were adversely affected due to manipulations in the stock market under the past regime.

It’s a well-known fact that during the last decade the intersection of finance and business was controlled by a few people with nexus to the Rajapaksa regime, the statement said.

They had access to vital information on transactions, which they used to earn undue profits,

There were pre-arranged transactions with state owned institutions instead of public auctions open to stock brokers and large investors.

The ministry said the government will also investigate the past irregularities.

However the statement had not mentioned of alleged insider dealing shortly before the auction and before a floor liquidity window of the Central Bank was closed.