Legal Counsel to Perpetual Treasuries, President’s Counsel Nihal Fernando yesterday raised a question as to how the Public Debt Department was planning to conduct the auction on February 27, 2015, before the intervention of the former CBSL Governor Arjun Mahendran. Replying to the question, Assistant Governor S.S. Ratnayake said the PDD had decided to raise 2.6 billion using the auction method and the rest with direct placements.
Fernando PC then asked AG Ratnayake as to on which rate they were planning to issue the direct placements, to which Ratnayake answered as a 10.75.
Fernando PC then pointed out the direct placement issuance would then have been done 53 basis points lesser,because of which the Employment Provident Fund would have then gone through a loss of Rs.25 million.
Asked to express his opinion on the assumption, AG Ratnayake said the PDD is only concerned about fulfilling the government requirement and making it profitable to the government. We cannot be concerned about the losses made by the EPF or any other Primary Dealer.
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