Friday, October 14, 2016

Bank of Ceylon complicit in losing Rs5B in April 2016



When you have a chance of cleaning up Rs5B profit and you don’t make it, then you are responsible for actually losing this on behalf of the people of Sri Lanka. Where is the Media coverage on this error? Not surprising considering the idiots called Journalists.

Perpetual Treasuries gain of Rs5B is actually BOC's Loss of the same amount! They made so much because the BOC chose not to.

The GM of the Bank of Ceylon and possibly also the Chairman (who knows nothing of banking being a lawyer) should resign for their dereliction of duty in managing this Bank to give their owners, the Govt. the best possible profit.

It was obvious to all, that the Central Bank (CBSL) had a massive borrowing requirement to meet their obligations. Instead of bidding for the bonds on their own account through their Primary Dealership, they merely lent the Money to Perptetual Treasuries(PT) to do the bidding and making Rs5B profit in two months, April and May 2016, by selling at a profit on the secondary markets.

Where is the media when it comes to reporting this? NOTHING, ZILCH! Why have they not picked up on this? Simply because they are following their own agenda, in hounding profitable businesses and our Financial Media, obviously don’t like people legitimately making money! The STUPID writers of the Daily Mirror pick up on a success story and turn it round somehow to look as if it was somehow obscene, or INSINUATE that PT did something wrong in making this kind of  money! Don’t blame PT blame BOC instead for their risk averse attitude.


On a different note the Central Bank senior staff MUST be interdicted for leaking this information, and Public Debt Department fired for being unable to get a better rate which to anyone was far too high, as seen by the profits in the secondary market selling them for much more than purchase. Why do we tolerate incompetent people and pay them so much to litter these positions in the CBSL?

It is time therefore that the readers understand BOTH halves of the attached link which only shows one side and not the fact that the CBSL and BOC are really to blame for the fiasco. All Bank Primary dealers are abrogating their responsibilities.


The CBSL gets monthly information on the profitability of the Primary Dealers, and that information is NOT shared with the Public Debt department which therefore does NOT realize how big their mistakes are in pricing Bonds. Its time for a cull of the top staff of the CBSL, as they are clearly shown to be costing billions to the Country. That is where the real problem lies NOT with PT!

2 comments:

  1. Information is leaked out of the CB like a siv and guess who old WA Wijewardena is the recipient of this as he knows how to use it for his personal sick agenda, which he thrives on reporting on. All very destructive.

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  2. The BOC donkeys have cost the Treasury 25billion rupees! If they made 5billion profit more, the value of BOC would be 50billion. If the govt privatizes 50% then they will receive 25billion more.
    Instead of going after Perpetual which is simply a sour grapes witch hunt, they should have taken BOC to task and explained this clearly.

    when you are too lazy to make money as your compensation does not change the owner suffers. Here the owner are the people of Sri Lanka.

    I treated this as a net of tax figure assuming it is not taxable, for the purists out their ready to nit pick and not get the gist of the argument.

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