Ravi instructed state banks to bid low at bond auctions

It has been revealed at the Presidential Commission of Inquiry that former Finance Minister Ravi Karunanayake had instructed state banks to bid at low rates during the bond auction held on March 29, 2016.

The Chairman of People’s Bank, Hemasiri Fernando, made this revelation while testifying today (4) during the hearing of the controversial Central Bank Treasury bond issuance on February 27, 2015.

During proceedings today (4), it was revealed that senior executive members from People’s Bank, National Savings Bank and Bank of Ceylon were summoned to the Ministry of Finance on March 29 and 31st 2017, prior to the bond auctions that took place.

It was also reported that the former Minister of Finance Ravi Karunanayke instructed the state banks to bid low rates at the auction giving a range of specific rates for the banks to submit their bids.

Reports confirm that People’s bank suffered heavy losses by following the instructions of the former Finance Minister.