Referring to the relationship between former Central Bank Governor Ajith Nivaard Cabraal and Perpetual Treasuries, as revealed during the testimony of PTL CEO Kasun Palisena, senior Cabinet Ministers asserted that the Commission to call before them, the former Central Bank Governor.
In his evidence Palisena described the nexus between the Company and the Central Bank asserting that the ‘relationship was not a new one'.
“We started with a capital of Rs.300 million in the company. By September 31,2014, our capital gain rose to Rs. 816 million. 85% of our trading was seven or more year long term bonds. Rs. 567 million of the 816, was by trading. Capital of the PTL by the same date was Rs 1.40 billion. It is a 400% increase of the initial capital the company had,” Palisena told the PCoI.
Commissioner, Justice Jayawardena asked Palisena whether between the beginning of 2014 to beginning of 2015, former Central Bank Governor Ajit Nivard Cabraal’s sister Shiromi Wickremesinghe was a director of the PTL. Palisena answered in affirmative.
Previous evidence led at the PCoI has pointed out that the relationship of Nivard Cabraal and his sister who is in the director board of a primary dealer is a conflict of interest, during the course of the hearings on Tuesday.
Palisena was also asked regarding PTI's involvement in the share market in 2012, during which time many players in the stock market “pumped and dumped” stocks.
The Minister said that it was imperative that the Commission gets to the bottom of the entire relationships and thereby lay before the public the crux which gave rise to the issue.