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Budget 2022: Budget transfers ‘black’ profits of Perpetual Treasuries to govt. coffers

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ECONOMYNEXT-  Finance Minister Basil Rajapaksa presenting his 2022 budget on Friday (14) transferred 8.5 billion rupees earned by Perpetual Treasuries, alleged to be involved in a 2016 bond scam, to Treasury coffers on the grounds of the company breaching the Central Bank’s best practices code of conduct.

The move came as the cash-strapped government desperately looked for revenue to boost post-pandemic economic revival.

The finance minister said that according to the report of the Presidential Commission of Inquiry into the scam, Perpetual Treasuries Limited has made this profit mainly through “price-sensitive inside information” and “market manipulation”.

“Therefore, this report identifies that Rs. 8.5 billion is (as bee) received by willfully violating the provisions of the code of conduct on best practices issued by the Central Bank of Sri Lanka under the Registered Stock and Securities Ordinance No. 07 of 1937, to the primary dealers,” Rajapksa said in his budget speech.

“According to the recommendations of this Commission, and without hindering the legal actions taken by the Attorney General, it is proposed to transfer to the Treasury the Rupees 8.5 billion that the Perpetual Treasuries Limited has earned in violation of the Code of Conduct of the Central Bank of Sri Lanka.”

Perpetual Treasuries, a Central Bank licensed primary dealer in government bonds’ activities were suspended on several occasions after a bond scam that ran between 2006 to 2016 came to light.

The company was owned by Arjun Aloysius, the son-in-law of ex-Central Bank Governor Arjuna Mahendran who held office in 2015-2016.

A Presidential Commission of Inquiry found that Mahendran had interfered in a bond auction and benefited from leaked inside information to help his Perpetual Treasuries make billions of rupees in profits.

Mahendran raised a policy rate floor outside the regular monetary policy meeting and pressured a tender board to sell bonds at high prices, the inquiry found.

The inquiry also found that Perpetual Treasuries had paid Central Bank dealers who were managing the country’s largest pension fund to buy bonds at high prices and had influeced other state funds.



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President outlines a bold vision for Sri Lanka tourism at THASL’s 58th AGM

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Addressing the 58th Annual General Meeting of The Hotels Association of Sri Lanka (THASL) held on Monday (27) at Shangri-La Hotel, Colombo, President Ranil Wickremesinghe outlined a comprehensive strategy to propel the country’s tourism sector to new heights. Focused on surpassing the target of 5 million tourists and redefining traditional approaches, the President’s vision extends to achieving 7.5 million visitors in the coming years. The President emphasized the need for innovative thinking and collaboration within the industry to ensure sustainable growth.

“When I took over the government, I realized that sustainability alone is not sufficient. How are we going to earn foreign exchange? How are we going to have a positive balance of trade? In that, there were many suggestions. But what is the low-hanging fruit? And one of the low-hanging fruits was tourism. Let’s promote tourism fully,” President Wickremesinghe declared.

The President acknowledged the need to move beyond the existing framework and embrace competition to elevate Sri Lanka’s standing in the global tourism market. Drawing parallels with countries like Vietnam, he questioned why they had more tourists despite being in the industry for a shorter period. President Wickremesinghe stressed the importance of increasing the number of tourists to 2.5 million in the upcoming year and subsequently expanding on this figure.

(PMD)

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Free visas for nationals of China, India, Indonesia, Russsia, Thailand, Malaysia and Japan from Monday (27)

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The Controller General of Immigration and Emigration has stated that nationals of China, India, Indonesia, Russsia, Thailand, Malaysia and Japan will be granted free visas from Monday 27-11-2023 to 31-03-2024 as a pilot program to rebuild the tourism industry.

Nationals of the above nominated countries possessing, Diplomatic, Official, Public Affairs, Services and Ordinary Passports are eligible to enjoy a visa free regime under this scheme.

The above mentioned nationals should apply for Electronic Travel Authorization (ETA) before arriving in Sri Lanka subject to granting / issuing free of charge up to 31-03-2024.

Under this scheme tourists can enjoy a 30 days free visa period and a double entry facility is permitted within 30 days from the date of first arrival in Sri Lanka.

Free ETA under this scheme can be applied up to 31-03-2024.

The free ETA cannot be extended further and is limited only to thirty (30) days. In case the free ETA period of 30 days expires after 31-03-2024, an extension of visa could be applied subject to paying the appropriate fee.

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Cabinet gives green light for Colombo Port City Order No. 3 of 2023 to be presented in Parliament

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The President in his capacity as the Minister of Investment Promotion has published the Colombo Port City Orders No. 3 of 2023 (Enterprises with Strategic Value – Guidelines for releasing or encouraging to award for customs – free enterprises) under the provisions of the Colombo Port City Economic Commission Act No. 11 of 2021 by the extraordinary gazette notification No. 2355/30 dated 25.10.2023.

The Cabinet of Ministers granted approval to the proposal furnished by the Hon. President in his capacity as the Minister of Investment Promotions to submit the said orders to the Parliament for its concurrence.

(PMD)

 

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