The Government yesterday via the 2022 Budget announced plans to take back Rs. 8.5 billion of ill-gotten wealth from Perpetual Treasuries of bond scam fame and transfer it to the Treasury.

Finance Minister Basil Rajapaksa said the move follows the tri-party Presidential Commission of Inquiry, chaired by retired Supreme Court Judge K.T. Chithrasiri, on the issuance of the Treasury bonds during the period 1 February 2015 to 31 March 2016, finding Perpetual Treasuries at fault of violating the Code of Conduct of the Central Bank.

He said, as per the report of the Commission, when selling Treasury bonds to EPF, other statutory entities and Government institutions, Perpetual Treasuries made profit mainly through “price-sensitive inside information” and “market manipulation”.

“Therefore, this report identifies that Rs. 8.5 billion was received by wilfully violating the provisions of the Code of Conduct issued by the Central Bank under the Registered Stock and Securities Ordinance No. 07 of 1937 to the primary dealers on best practices,” Basil said.

He told Parliament that the move, as per recommendations of the Commission, would be implemented without hindering the legal action taken by the Attorney General. 

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