Ravi claims no connection to bond gazette

Minister of Finance Ravi Karunanayake categorically rejected his involvement in issuing the controversial gazette notification and authorising its publication by signing it. 

According to him the gazette notification was authorised by the Superintendent of the Public Debt Department.

“The Extraordinary Gazette Notification 1895/19 of 1 January 2015 was not referring to the Finance Ministry by going against the standards and practice. It was authorised and was sent to the Government Printer directly by the Public Debt Department,” Minister Karunanayake stated yesterday in Parliament, inviting the Joint Opposition to challenge the gazette in Court.

According to the Minister, the Unity Government has followed the prior examples set and followed by previous officials, including the former Finance Minister. “It has been the tradition followed by the former President and Finance Minister Mahinda Rajapaksa, Treasury Secretary P.B. Jayasundara and Central Bank Governor Ajith Nivard Cabraal. They were the pioneers of the tradition. Even former President Rajapaksa placed his signature on a similar gazette on 31 December 2012. But the Central Bank issued gazettes without the signature for the period of 2013-2015,” he added.

“Out of Rs.7.8 billion worth of bonds issued since 2005 till January 2015, 80.8% were private placements shared between a select few. These selected bidders were Commercial Bank of Ceylon, Hatton National Bank Plc and Seylan Bank Plc who was offered 33%, 17% and 18% respectively. This was the reason the Prime Minister directed to go for an auction instead of a private placement,” said the Finance Minister, who proposed strict laws to govern the financial sector to curb non-banking fraud and mismanagement. (AH)