The much spoken about breakfast meeting which took place on February 23, 2015 at the Central Bank premises prior to the questioned Treasury Bond issuance, came to the limelight again yesterday.
Legal Counsel Chanaka de Silva questioned Dr. Nandalal Weerasinghe at the Presidential Commission Inquiring into the Treasury Bond Issue, on the events that took place at the breakfast meeting.
At the breakfast meeting, it is reported that a sudden government requirement was discussed, resulting the decision regarding the 30 year Treasury Bond transaction worth Rs. 10.5 billion.
When the State Counsel questioned Dr. Weerasinghe regarding the meeting on a previous day, he said that the discussion never reached a conclusion that a certain amount of money should be raised to meet the government requirement.
Legal Counsel Chanaka de Silva questioned him on this statement at the Presidential Commission Inquiring into the Treasury Bond Issue yesterday.
Chanaka de Silva produced a letter signed by Finance Minister Ravi Karunanayake. The letter stated that a decision was taken to raise Rs. 75 billion to meet government requirements following the breakfast meeting.
When asked as to why such a letter was produced, de Silva said his client, former Central Bank Governor Arjun Mahendran requested for the letter.
De Silva was questioned if he wishes to summon Minister Karunanayake as a witness regarding the issue at hand, to which de Silva said he does not, but if the Commission does, so be it.
Senior Additional Solicitor General Dappula de Livera said the Attorney General’s panel wanted a background check on the letter and the letter did not have a date.
De Silva agreed on the AG’s panel conducting a background check on the letter. When questioned on the letter, Dr. Weerasinghe said the content of the letter is wrong. There was no such a decision made at the breakfast meeting to raise Rs. 75 billion. De Silva also asked Dr. Weerasinghe if he submitted a report on the March 3, 2015 at a meeting held at the General Treasury regarding certain road development projects. Dr. Weerasinghe said he did and also mentioned that there was no such conclusion as to raise a Rs. 75 billion.
Meanwhile, de Silva also questioned Dr. Weerasinghe on the Market Operations Committee (MOC) meeting on February 27, 2015.
De Silva asked if former Governor Mahendran did or did not bring with him a newspaper article saying that 1 billion USD has been released to the market by the Central Bank. Dr. Weerasinghe said it is difficult for him to make a statement on it as he does not remember such an incident.
However, de Silva suggested that the decision to remove 5 percent penal rate at the MOC meeting came as a result of an attempt to stop the Rupee depreciating against the released 1 billion US Dollars.