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The Bond Commission in its report has recommended that all bond issues since 2008 - 2015 should be investigated, President Maithripala Sirisena said today.

“As the Commission did not have the mandate to inquire into Treasury bond issues from 2008 to 2015, the Commission had not done that. However, Commission recommends that there should be an investigation into that period too” Sirisena said.

According to the President, the commission has recommended that the loss incurred by the government should be repaid by Perpetual Treasuries Ltd. and that both the main political parties have been taken to task by the report.

The President also announced that in the report the commission has asked for a court audit to be carried out on all bond issues since 2008 as it has identified possible irregularities during the processes.

Sirisena also announced that 17 reports received by him from the Presidential Commission to Inquire and Investigate into Serious Acts of Fraud and Corruption (PRECIFAC) has been handed over to the Attorney General for legal action and a further 17 reports will be handed over to him shortly.

 Prime Minister’s actions proper

 The Commission report had said that Prime Minister’s responsibility in the appointment of Arjuna Mahendran as the governor to the Central Bank was proper. According to the President, the Commission said the Prime Minister had made his statement in Parliament regarding the appointment of Mahendran believing in the facts presented by Mahendran and Samarasiri, especially on the promises made by Mahendran. “The Report also says that the Prime Minister should not have done that,” Sirisena said.

Loss of Rs. 11 000 Million

The President also said that Perpetual had made earnings of over Rs. 11 000 Million in an undue manner as found out by the commission. According to the President, the commission has recommended that costs of the commission and the loss incurred by the government should be recovered from Perpetual Treasuries.

The report had also stated that Perpetual Treasuries Ltd had made profits through illegal means with the involvement of Arjuna Mahendran, Bank officials and some outside individuals. It stated that senior officials of the Central Bank were also inactive before the former Governor of Central Bank, Arjuna Mahendran. The report also accused Mahendran of interfering to bond auctions through a system of incorrect and unconventional methods and that he is responsible for providing internal information to outsiders.

Both main parties accused

While stating that the commission was not appointed for any political advantage adding that both parties have been taken to task by the commission and no party has been singled out.

Legal action against Ravi K

The President also said laws have to be amended to take action for bribery related to the bond issue and steps have already been taken in this regard.

Meanwhile the Commission report referring to the allegation against former Finance Minister Ravi Karunanayake regarding the payment of rent for the penthouse apartment belonging to the Aloysius Family and their Walt and Rowe Company stated that Karunanayake was responsible for that and recommended that the government take necessary action against Ravi Karunanayake under the section of bribery and corruption and further legal action under the penal codes for giving false evidence at the Commission.

 Presidents Special Statement

(Video)

In related news

 UNP wants Greek Bond Scam Investigated

A British tourist has been found dead in suspicious circumstances in Sri Lanka, according to local media reports.

The body is said to have been discovered this morning in a suburb of the country’s capital Colombo.

A Brit has reportedly been found dead in Colombo, Sri Lanka (Getty)

 The victim, who was found in Araliya Uyana in Maligawatta, has not yet been named.

But police are investigating the death, which is described as “suspicious”, according to Sri Lanka’s Sunday Times.

The 37-year-old was found with a wound on their face, according to a police spokesperson quoted by Ada Derana.

SP Ruwan Gunasekara reportedly said the Brit had arrived in the country on November 25 and had been due to leave yesterday but extended their visa until January 25.

Forensic officers and a canine unit are said to have been sent to the scene to hunt for clues.

And the local magistrate has begun an official inquiry into the mysterious death, it was reported.

- A loss of LKR 11 billion

- Arjun misused his power

- Prime Minister to bear some responsibility

- Bribery Commission to investigate Ravi K.

 The recommendations made by the commission appointed to investigate the bond issue has been revealed to isis.lk.

According to information received the recommendations will also be included in the statement which is set to be made by President Maithripala Sirisena on the report.

The report has revealed that through the bond issue, Perpetual Treasuries Ltd. has earned around Rs. 11 Billion in a devious manner. According to the report, the previous governor of the Central Bank Arjuna Mahendran has misused his power in this matter while it also points out that the Prime Minister is also responsible in appointing such a person for the position. It has recommended that the loss incurred by the government should be paid by those involved.

The commission has also recommended that a separate investigation by the Bribery commission should commence regarding the Former Minister of Finance Ravi Karunanayake's dealings with the accused and obtaining a luxury house from them.

Reports say the special statement made by the President has already been recorded and will be released to all media outlets today evening.

The Ministerial Committee on SriLankan Airlines is set to meet today with the resign offer of six members of the SriLankan Board likely to be taken up with expectations of a new board being appointed to make way for the restructuring of the troubled business entity, a top official confirmed.

The Committee headed by the Prime Minister Ranil Wickremesinghe will also carry forward the restructuring discussion on the cash-strapped national airline.

British consultant Nyras Consulting Company, specialising in the global aviation sector, was appointed to lead the restructuring of the carrier. The consultants, who have been tasked with restructuring and finding an investor for the airline, presented their first report to both committees last month.

The preliminary report by the consultants outlined a restructuring program under five broad areas - managing the right size and type of aircraft fleet, debt restructuring, tax concessions, network rationalising and fuel price - to restructure and improve its financial position. The consultants had expressed confidence in finding a suitable investor once the restructuring was complete.

The SriLankan Airlines Board of Management’s offer to resign from their posts came two days after this preliminary meeting. A letter detailing a board decision by six of the seven board members to offer to resign was submitted to the Prime Minister’s office on 22 December 2017, Sri Lankan Chairman Ajit Dias confirmed to the media later.

However, no decision has been taken on the offer since then. Public Enterprise Development Minister Kabir Hashim and ministry secretary Ravindra Hewavitharana both told the Daily FT that they were not officially informed about the offer made by the board.

However, it was speculated that the offer to resign may have stemmed from an earlier discussion within the official's committee suggesting that it would be more appropriate to appoint a new board to carry out the changes.

Source : Daily FT

State Minister of Law and Order, Piyasena Gamage is said to have acted in a shameless and disruptive manner at the Nagoda Police station on January 1 while violating everything the Yahapalana government stands for.

Apparently the Minister had acted in this manner against officers of the Traffic division of the Nagoda Police station for issuing fines to several supporters of the Minister for not wearing helmets while travelling on a motorcycles.

Sources say the Minister had also attempted to assault one of the officers who had issued the fine notices while berating them in abusive language unfit for an individual of his station. He is also said to have demanded that the fine notices be taken back.

Meanwhile, the Minister is also said to have ordered for STF protection to be given to his son despite according to normal procedure intelligence and security reports are scrutinized before providing STF security to a person.

The house belonging to the Assistant Excise Commissioner of the North-Western Province, Leslie Jayantha Ranwaweera, was attacked with a hand grenade.

The attack had taken place while the Assistant Commissioner was in the house at around 1.00 am, today (02).

Police sources reported that three vehicles parked at the house have been damaged. Pannala Police have started conducting further investigations.

The Tourist Police with the assistance of the Local Government bodies, the Tourism Development Authority and the Tourist Board are to conduct raids on restaurants, villas and tourist lodges in the southern tourist belt that cater only to foreigners and discriminate against Sri Lankans under the directive of the Local Government and Provincial Councils Minister Faizer Mustapha.

The Management of tourist facilities who were found discriminative on Sri Lankans during the raids will be prosecuted under the common law and Tourist Promotion law and their trade permits will be withdrawn.

A crucial discussion was held at the Local Government and Provincial Councils Ministry chaired by Minister Musthapha, took this decision to prevent what he described as the outcome of a ‘slavish or colonial mentality’.

Minister Musthapha pointed out that a large number of villas, restaurants and tourist lodges from Wadduwa to Tangalle have put up boards ‘Tourist Only’ in front of their facilities on the Southern Coast and restricted access to Sri Lankans which is a violation of the Constitution, human rights and confronts the dignity and self respect of Sri Lankans.

Officials of the Tourist Board and Tourism Development Authority pointed out that many of these establishments had not been duly registered with the Tourist Board and run on a ‘Trade License’ obtained from the local government authority which is also illegal.

 The villas, lodges and restaurants discriminative on Sri Lankans were run mainly in Wadduwa, Hikkaduwa, Galle, Mirissa, Weligama, Habaraduwa and Unawatuna, it was revealed. Raids will be started from tomorrow (4) and continue until all those tourist facilities discriminative against Sri Lanka tourists are apprehended and prosecuted. Officials of the Tourist Police will carry out raids with the help of officials of the respective local government body, Tourism Promotion Authority and Sri Lanka Tourist Board.

The programme to eliminate this discrimination against Sri Lankans will be expanded to tourist areas in other parts of the country with the experience gained from these raids, Minister Musthapha added.

It was also revealed at the discussion that some tourist facilities with ‘Foreigners Only’ tag are owned by foreigners and they do not pay taxes and income is taken out of the country without any contribution to the tourist industry or to the economy.

It was also revealed that there are 14 tourist villas and restaurants at Weligama alone that cater only to foreigners.

A senior police officer pointed out that a person or establishment that discriminates against a Sri Lankan can be prosecuted under the provisions of the Constitution and Criminal Code.

Source : Daily News

Premier Ranil Wickremesinghe ratified the media guidelines imposed by the Elections Commission, to be followed by Electronic and Print Media during an election, today (02) at the Temple Trees. The document is due to be tabled in Parliament later today.

The Elections Commission issued the guidelines following the 19th Amendment to the Constitution, to ensure rightful exercise of franchise and a free and fair election, to be followed by all electronic and print media institutions and personnel involved.

The guideline states all telecasting, broadcasting and print media shall be neutral and impartial in their reporting of election related matters and shall not discriminate any contesting political party, independent group or a candidate, in allocating airtime and allotting space in the newspapers.

Photo: Lankadeepa

Sri Lankan Prime Minister Ranil Wickremesinghe on Tuesday made an inspection tour of the mega Port City which is being constructed close to the Colombo Harbour in the island country's capital.

The Colombo Port City, which will be the first of its kind in South Asia, is being constructed by China Harbour Engineering Company Ltd.(CHEC).

Wickremesinghe, who was accompanied by several ministers, was briefed by the Port City management on the overall project and the present stage of construction.

This project which is also expected to be a financial center, will convert Sri Lanka into a global hub in the region, Wickremesinghe told reporters at the site of construction.

"The CHEC is reclaiming land from the sea to construct this city and we must make use of it. In the future, this Port City will have at least 75,000 people residing here and 200,000 people moving in and out of the city on a daily basis," Wickremesinghe added.

The prime minister added that the Colombo Port City will have many facilities and bring in new life to the Sri Lankan economy.

"The Colombo Port City will be one of a kind and we thank CHEC and the Megapolis and Western Development Ministry for their dedicated work towards the Port City," the prime minister said.

The Colombo Port City, launched in September 2014, will have many unique features such as a strong solar and wind power system, waste recycling and a treatment to harvest rain water.

There will be several pedestrians and cycle lanes while the city will be connected to Colombo through a Light Rail Transport system.

The Port City will also include residential buildings, schools, banks, shopping malls, a marina, parks, hotels and public beaches.

Once completed, the projected is expected to attract 15 billion U.S. dollars worth of investment into Sri Lanka.

(Xinhua)

Strict legal action will be taken against local government elections candidates in Sri Lanka who distribute monetary or material subsidies funded personally or from public money as a part of their election campaign, the Elections Commission Chairman Mahinda Deshapriya said.

Issuing a press release, Chairman Deshapriya pointed out that according to the Elections Ordinance distributing subsidies during the election campaigning is entirely illegal and considered a case of bribing. If any public officer or government institute is to violate election laws and directives issued by the Elections Commission, action will be taken against them by the Commission, the statement said.

Public officers and politicians involved in such actions should be held responsible for the misuse of public funds, Deshapriya pointed out. “The officers of the Elections Commission will take direct action against public officers and the Commission together with the police will also make submissions for court inquiries on breach of election law and politicians could pursue election petitions against such actions,” the statement said.

The Elections Commission observes that the political parties and candidates should refrain from acts such as distributing education materials, gifts, and contributing to religious institutes. The Commission states that complaints have been lodged against such activities, stating that they are also parts of election campaigning.

The Commission has directed Divisional Secretariats and other government bodies to refrain from distributing public funded aids among people until after 15th February, 2018, as it is a prolonged habit to use these programs as a part of the election campaign. “The divisional secretariats are advised to distribute only items such as livestock, plants, seeds and similar items which are difficult to be stored. Other items, which can be stored for several days, should remain in stores until 15th February,” the statement said.

The public is also advised not to accept public funded aids as a bondage to vote a particular political party, Chairman of the Elections Commission noted. “People must understand that by right they are entitled to receive these aids from the government. They will be made aware that these aids are provided by public money.” the statement said.

The Commission also observes that any statements justifying the distribution of financial and material aid to be groundless.

Concerns have been raised within business circles over the credibility of the Malaysian bidder for several assets of the EAP Group’s ETI subsidiaries.

It is reported that Malaysian businessman Sudhir Jayaram’s Straits Grid Pte Ltd., is leading a consortium of interested parties to bid for EAP Group’s television/media, cinemas, hotels, jewellery and financial services businesses. The five businesses are carried out by subsidiaries of Edirisinghe Trust Investments (ETI). Sudhir has submitted a bid worth $ 60 million (over Rs. 9 billion). Sources said there had been several rounds of negotiations on the deal prior to the ETI and other finance company Swarnamahal Financial Services Plc which were brought under the Central Bank’s purview yesterday.

Concerns are being raised over Jayaram due to a host of matters including alleged criminal acts such as money laundering. In November he was nabbed at the Bandaranaike International Airport prior to his departure with $ 50,000 in undeclared currency. His son and another individual also had $ 50,000 each in their possession while the fourth person carried $ 58,000. Thanks to political influence Jayaram was released without any penalty. Some said authorities have launched a full scale probe over the incident.

Jayaram is also part of the consortium, which includes SupremeSAT fame R. M. Manivannan, engaged in the $ 250 million Horton Square mixed development project at Colombo 7, which the Prime Minister-chaired Cabinet Committee on Economic Management (CCEM) has raised various questions over.

Jayaram was also named in the United Nations investigation into the famous Iraqi oil-for-food scandal in late 2000.

Concerns include whether the Central Bank will allow a party with alleged questionable character and allegations to run a deposit taking finance company i.e. Swarnamahal Financial Services. Doubts are also being raised over whether the Telecommunications Regulatory Commission (TRC) will issue a “no objection” letter to change the name of the owner of the frequency leased to Swarnavahini of the EAP Group. This is in the event Jayaram and his partners succeed in manoeuvring the EAP deal in their favour using political clout.

Other sources noted that with ETI and SFS being brought under direct purview of the Central Bank, fresh negotiations and bids may be sought. However the Central Bank has been in the know of the bid by Sudhir and questionable credentials of his consortium.

CB Chief details new investor negotiations

Central Bank Governor Dr. Indrajit Coomaraswamy yesterday, without disclosing names, said that there was a potential investor for ETI and negotiations have been ongoing.

“They initially reached a figure of $ 60 million to buy all nine subsidiaries which will leave only EFIF, and now that offer has gone up to $ 75 million net. While there is $ 75 million of fresh infusion of capital, one also has to take into account that the same party has given a loan of Rs. 400 million ($ 2.6 million) as liquidity support to ETFI and they are writing off that loan. In addition, they are going to take over SFSP, which has a negative net worth of Rs. 1.2 billion ($ 8 million). All together there is about $ 85 million worth of infusion in total,” he added.

Refraining from revealing the name of the company as the owners were negotiating with the investor, Dr.Coomaraswamy said: “It is a locally incorporated company. It is up to the owners to negotiate with the investors. Our responsibility is make sure the valuation of the assets of the company is sufficiently high to be fair by the depositors.”

For the last four to five months the potential investor has kept the company going by infusing Rs. 400 million and he has completed a due diligence. Therefore now the Monetary Board has to take a call on this $ 75 million fresh infusion, which he said the Monetary Board would make a decision on in a couple of days at the next meeting.

On top of that, he said the Central Bank was negotiating with a bank to have a safety net of a guaranteed standby credit line of about Rs. 5 billion as well. “It will be a loan to the company.”

Asserting that the Central Bank was doing the due diligence, he said there were two factors that are important, which is proof of funds and the fact that money must come from bank to bank.

“Those are the two conditions we have,” he said.

“Other companies that are facing problems are not as asset-rich as this company. That is why we are having such difficulties in getting investors into some of the other companies. Here there is an investor who is willing to pay a fairly reasonable price.”

Source : Daily FT

‘The Sunday Times’ quoting sources said that the report of the Presidential Commission which enquired in to the controversial Central Bank bond issue has named several key figures, including a number of politicians, and has recommended that stern action is taken against them.

However, according to the paper, these are unconfirmed reports.

Meanwhile, it is reported that the President is preparing to make a special statement to the media regarding the controversial report on the bond scam handed over to him on Saturday by the special Presidential Commission.

The statement is due to be issued on Wednesday (03). The president has also confirmed the news on his Twitter account despite sources claiming that the contents of the report will not be published prior to the local government polls.

"The content of the report should be immediately revealed to the public"

 Speaking regarding the issue leader of the JVP, Anura Kumara Dissanayake said the Bond report should be publicized.

 According to the MP the President along with the SLFP ministers recently made a pledge but it is a pointless exercise and should have been made at the Presidential election. “The President must act against corruption” he stressed.