Reuters
Colombo
Sri Lanka’s parliament will launch a new inquiry into a controversial government bond deal after the main opposition party said an initial investigation that cleared the central bank chief of any direct role was not independent.
The opposition United People’s Freedom Party (UPFA), which has a majority of seats in parliament, has alleged corruption in the February 27 sale of a 30-year treasury bond. The government raised more than Rs10bn ($75.2mn) from the issue at 11.73%, after initially offering just Rs1bin with an indicative price of 9.5%.
In furious exchanges in parliament on Thursday, UPFA lawmakers protested the findings of an initial inquiry by a three-member committee appointed by Prime Minister Ranil Wickremesinghe, prompting parliament’s Speaker to announce a new enquiry.
“We will start the probe on Tuesday. We are going ahead with questioning all the officials including from the finance ministry and central bank who are involved in the bond issue,” D E W Gunasekera, an opposition legislator and head of the Parliamentary Committee on Public Enterprises, said.
“We will also summon the central bank governor and we will report the findings to the parliament for action.”
The UPFA queries why the size of the issue increased so much and says the higher yield, compared to the indicated yield, would cost the government more than Rs50bn ($373.97mn).
Central Bank Governor Arjuna Mahendran was questioned by Sri Lanka’s anti-corruption authority on April 16 in connection with the deal and banned from traveling abroad for three months.
He resumed duties on April 23, following voluntary leave of absence, after being cleared by the three-member committee.
Mahendran, a Sri Lankan-born Singapore national, has denied any wrongdoing.
The committee itself had said a further inquiry was needed into what it called the unusual bidding pattern of Perpetual Treasuries, a dealing house that took part in the auction.
Gunasekera said the parliament speaker has given the new committee two weeks to complete its inquiry. Cabinet spokesman Rajitha Senaratne said the committee would comprise 13 members representing all parties in parliament.
