Former Central Bank Governor Nivard Cabraal in a statement has listed the summary of the losses of the Bond scam.
Following is the full text of his statement.
In this regard, at the invitation of the Bond Commission, I have submitted a comprehensive assessment of the loss suffered on 25 October 2017, a summary of which I believe would be relevant to be set out in this statement.
- Direct loss to the Government as per the computations of the Auditor General - Rs. 1,674 million
nIncrease in interest burden of the Government due to the unnecessary and unwarranted increase in interest rates - Rs. 144,598 million
- The loss suffered by the public due to the unnecessary and unwarranted increase in interest rates – to be computed
- The consequential losses suffered by the economy due to the erosion of confidence as a result of the bond scam
- Economic growth dipped significantly since 2014
- GDP as well as GDP per capita stagnated
- Inflation dipped in 2015, but rose again in 2016
- Number employed dropped dramatically
- Balance of Payments (BOP) turned into a massive deficit
- Trade deficit expanded significantly
- Foreign Direct Investments (FDIs) dropped drastically
- External reserves plunged
- Foreign Investment in Treasury Bills and Bonds reduced significantly
- Sri Lanka rupee depreciated substantially
- International credit ratings worsened
- Fiscal deficit widened
- Public debt surged to dangerous levels
- Government interest cost escalated
- Sri Lanka’s global rankings fell dramatically
- The losses suffered by the EPF and other Government institutions
