No FM has ever directly informed CB Governor of govt. fund requirements before

Dy Secy to Treasury reveals:


Deputy Secretary to the Treasury SR Attygalle arriving at the Presidential Commisssion probing Central Bank bond scandal yesterday. Pic by Nimal Dayaratne

By Shyam Nuwan Ganewatta and Sarath Dharmasena

Deputy Secretary to the Treasury S. R. Attygalle, testifying before the Presidential Commission of Inquiry, probing the alleged bond scams yesterday, said that as far as he knew there had been no instance where the Finance Minister directly wrote to the Central Bank Governor, informing the latter of government’s additional fund requirements.

Attygalle said so in answer to a question raised by Senior State Counsel (Mrs.) Shahida Bari.

He said that prior Feb. 27, 2015 or towards the end of February 2015 neither the Finance Minister nor the Secretary to the Treasury had informed him that there was an urgent need for additional funds.

Attygalle said that if there had been such a need it should have been mentioned in the monthly cash flow statement of the Treasury and the standard procedure was for the Treasury to inform the Central Bank of such a need in writing.

Earlier, Chanaka de Silva, the Counsel appearing for former Central Bank Governor Arjuna Mahendran, submitted to the Commission an undated letter signed by Finance Minister Ravi Karunanayake and addressed to the Governor of the Central Bank, claiming that there was an urgent fund requirement to the tune of Rs. 75 billion. It was marked as a document of the Commission.

Yesterday, Bari based her questions to Attygalle on the aforesaid letter. She asked him whether he had been informed of such a fund requirement as stated in the letter. Attygalle answered in the negative.

Attygalle submitted to the Commission an affidavit containing details of the Treasury cash flow statements for January and February, 2015. He said it was the duty of Central Bank to raise funds for the state at least cost.

Counsel de Silva asked for time till this morning to study the affidavit. Attygalle is scheduled to be questioned by de Silva today.

Thereafter, Pan Asia Bank Deputy General Manager (Treasury) will testify again before the Commission.

Two lawyers asked for the permission of the Commission to appear for the interdicted Central Bank Senior Assistant Director Saman Kumara. Counsel Harshana Nanayakkara and one of juniors were granted permission.

The Commission will resume sittings today at 10.00 a.m.

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