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Public Debt Dept. to sell Treasuries worth Rs. 106 billion

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by Sanath Nanayakkare

 

The Public Debt Department of the Central Bank of Sri Lanka will issue Treasury bonds worth of Rs. 50 billion through an auction today (13) and Treasury bills worth of Rs. 56 billion through another auction on July 14.

At the Treasury bill auction, the yield rates of 91 day and 182-day maturities will be decided below the level of 364 day maturity set at 5.25%.

The issue of Rs 50,000 million Treasury Bonds will be issued under two series: Rs. 27,500 million and Rs. 22,500 million.

The maximum yield rate for acceptance for Treasury bonds will be 6.40% and 8.06% respectively. Bids are invited from the Primary Dealers in Treasury Bonds on the basis of clean prices (exclusive of accrued interest from the date of last coupon payment to the date of settlement).

For both Treasury bonds and bills the minimum amount of a bid is Rupees five million (Rs.5,000,000) and multiples of Rupees one million (Rs.1,000,000) there onwards.

The general public can purchase Treasury bonds and bills from the following Primary Dealers or any other Licensed Commercial Banks: Acuity Securities Ltd. 2206297, NSB Fund Management Co. Ltd 2425010, Bank of Ceylon 2541938. People’s Bank 2206783, Capital Alliance Ltd 2317777, Sampath Bank PLC 2305842, Commercial Bank of Ceylon PLC 2332319, Seylan Bank PLC 2456340, First Capital Treasuries PLC 2639883, WealthTrust Securities Ltd 2675096.

Notably, the Central Bank has raised the ‘ceiling rate’ for 12-month Treasury bills by 02 basis points to 5.25 percent for this week’s auction where 56 billion rupees of bills will be offered.

The ceiling policy rate has operated as a de facto policy rate through which large volumes of government debt is monetised.

The Central Bank purchases government securities with printed money to ensure a lower yield rate, but the interest rate demand in the market for investing in government securities is higher.

 

 



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PSTA worse than PTA: FSP

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The Frontline Socialist Party (FSP) yesterday accused the government of seeking to use the proposed Protection of the State from Terrorism Act (PSTA) to suppress popular political activity, claiming that some of its provisions were more repressive than those of the Prevention of Terrorism Act (PTA).

FSP Education Secretary Pubudu Jayagoda told a media briefing, in Nugegoda, that the definition of terrorism in the Bill was so broad that it could be used to label almost any form of popular political activity as terrorism.

He said the Bill’s approach to defining terrorism was based largely on attempts to compel a government, or an international organisation, to do, or refrain from doing something, rather than on internationally recognised criteria, such as killings, causing serious bodily harm, kidnapping or acts intended to spread terror among the public.

Jayagoda also alleged that the Bill transferred substantial powers from the judiciary to the executive, while extending powers of arrest, investigation and detention to the armed forces, in addition to the police.

He claimed that the government had sought to portray the Bill as a replacement for the PTA while retaining or introducing provisions that could facilitate political victimisation and repression.

The FSP also questioned the government’s decision to proceed with the Bill, despite having previously sought public views on an earlier draft.

Jayagoda said a draft had been published earlier this year, with the period for public submissions ending on February 28, but the Bill subsequently gazetted was essentially the same draft with some provisions rearranged.

Jayagoda also referred to a letter reportedly sent by Attorney-at-Law Saliya Peiris, a member of a Committee, chaired by President’s Counsel Rienzie Arsecularatne, that had been appointed to draft the legislation. He said Peiris had stated, in the October 06 letter, that changes had been made to the draft prepared by the Committee.

“This means that even the Committee, appointed to prepare the Bill, was a deception,” Jayagoda alleged.

He said that the PSTA was fundamentally similar to the Anti-Terrorism Bill introduced by the previous government, in 2023, which the National People’s Power (NPP) opposed and challenged in court.

“If the NPP opposed that Bill then and is now bringing the same legislation before Parliament, the government must explain its position,” he said.

Jayagoda called on NPP MPs to oppose the PSTA in Parliament and urged trade unions and other groups to build a broad public movement against the legislation.

He challenged the government to an open debate on the Bill.

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Shiranthi R remanded until 13 Oct.

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Former First Lady Shiranthi Rajapaksa was yesterday remanded until 13 October after being produced before the Colombo Magistrate’s Court following her arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Shiranthi, wife of former President Mahinda Rajapaksa, was arrested at her residence on Poorwarama Road, Kirulapone, after CIABOC officers recorded a statement from her for nearly two hours.

According to the CIABOC, the arrest was made over allegations that Rs. 10 million obtained from the National Savings Bank through the Siriliya Saviya organisation was misappropriated.

The money was allegedly obtained to provide a Computed Tomography (CT) scanner to the children’s hospital. Investigators allege that the scanner was not provided and that the funds were instead unlawfully used.

CIABOC is investigating alleged offences under the Public Property Act and corruption-related provisions in connection with the transaction and other financial activities involving Siriliya Saviya, which was headed by Rajapaksa.

Rajapaksa returned to Sri Lanka on Monday night on a flight from Malaysia after travelling overseas for medical treatment. She left for Singapore on 16 September after being admitted to a private hospital in Colombo on 15 September following an illness.

She had been due to appear before the Financial Crimes Investigation Division (FCID) on 13 October in connection with its investigation into the financial affairs of Siriliya Saviya.

Meanwhile, her lawyers filed an anticipatory bail application before the Maligakanda Magistrate’s Court on Monday, seeking an order preventing her arrest in connection with the FCID investigation.

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Former NSB Chairman Kariyawasam granted bail

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Former National Savings Bank (NSB) Chairman Pradeep Kariyawasam was yesterday granted bail by the Colombo Magistrate’s Court following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Kariyawasam, husband of former Chief Justice Shirani Bandaranayake, was arrested in connection with the Bribery Commission’s investigation into the ‘Siriliya Saviya’ account linked to former First Lady Shiranthi Rajapaksa.

The investigation concerns financial activities involving the Siriliya Saviya initiative, which was headed by Rajapaksa, wife of former President Mahinda Rajapaksa.

CIABOC is continuing investigations into the alleged financial irregularities relating to the account.

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