Ministry has started to recognise Treasury bonds at face value:Auditor General

The Ministry of Finance for a decade or more has been understating the liability of Treasury bonds, when preparing its financial statements based on the discount value of the Treasury bonds issued instead of the face value of the same, Auditor General Gamini Wijesinghe said.

“However, from the year 2016 the Finance Ministry has started to recognise the Treasury bonds at face value,”AG Wijesinghe said.

“Due to this long prevailing understating, a gap of Rs.506 billion has occurred in public debt,”AG Wijesinghe further said. “This is the reason why I disclaimed the Finance Ministry financial statements,” he pointed out.

AG Wijesinghe said so while testifying before the Presidential Commission inquiring into the Treasury bond issue, yesterday. He also said the Ministry of Finance is not legally bound to apply Sri Lankan accounting and auditing standards when preparing accounts, but it could apply them if wants to. 

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