Sri Lanka: EPF Defaulter Lakshaman Bandaranayake to sell LBO for EPF-Bond Deal Maker Perpetual Ranjan Hulugalle

Stock Broker Ranjan Hulugalle to Bailout EPF Defaulter cum Sarvodaya SEEDS Chairman Lakshaman Bandaranayake 'Before Bond Deals' with Arjun Aloysius

Sri Lanka’s foremost leak site Colombo Stock Exchange Leaks – CSE Leaks now have come to reveal another ‘Deal in the Offing’.

Lakshaman Bandaranayake

Accordingly Sri Lanka’s so called ‘Philanthropist’ Sarvodaya Founder Dr. A.T. Ariyaratne owned unregistered Microfinance financial arm Sarvodaya SEEDS’ Chairman turned former Vanguard Founder Lakshaman Bandaranayake who was scouting to sell his Vanguard 4 websites including LBO, LBR, Vimasuma and ColomboSpirit for over Rs.500 million in ‘An Unworthy’ deal thinking LBO is a 'Sri Lankan Social Media Icon' has now come to a negotiation to sign a ‘Deal’ to sell the Vanguard for First Guardian Equities – Director Equities Ranjan Hulugalle who is also a shareholder of the First Guardian Equities. Ranjan Hulugalle had recently joined 'Perpetual Group' of Companies of Sri Lanka's emerging 'Bond King' Arjun Aloysius - the Grand Son of Sri Lanka's Kattar Aloysius - and Arjun Aloysius had committed the largest 'Bond Fraud Deal' with his Father-In-Law Sri Lanka's present Central Bank Governor - Arjuna Mahendran on 27th February 2015 which will come to light soon. 

Prof. Rohan Samarajiva

Dr. Harsha De Silva

According to Employees and Insiders of Vanguard, and Officials of EPF; Lakshaman Bandaranayake the Founder of Vanguard has defaulted over Rs.5 million to Sri Lanka’s Private Sector Worker’s Savings Fund - Employees Provident Fund (EPF) without paying his employees dues for EPF and over Rs.20 million as Employees salaries; in which he fired several employees of Vanguard and let employees leave without paying their salaries from 2010 onwards. These EPF defaults had been committed by Lakshaman Banadaranayake despite Lakshaman Bandaranayake heavily promoting ‘So titled Not So Transparent- EPF Stock Market Deals’ on his Vanguard owned LBO, LBR and Vimasuma where his Chief Editor (who was mainly paid by United States New York Former Mayor Michael Bloomberg owned Bloomberg operations in Sri Lanka) heavily promoted UNP Member of Parliament Dr. Harsha De Silva who was then an Independent Economist at LIRNE Asia. By promoting Dr. Harsha De Silva on LBO,LBR and Vimasuma Lakshaman Bandaranayake the EPF Defaulter brought and articulated Dr. Harsha to become an UNP Politician after his not so Economical career at DFCC Bank and LIRNE Asia and as a gift Lakshaman Bandaranayake  the EPF Defaulter got a Director post at LIRNE Asia from Dr. Harsha De Silva and LIRNE Asia Founder Prof.Rohan Samarajiva fame. Lakshaman Bandaranayake presently is the Chairman of Sarvodaya SEEDS (Sarvodaya Economic Enterprise Development Services (Guarantee) Ltd) that owns Deshodaya Development Finance Company (DDFC) that seeks a listing through its merger and acquisition of George Stuart Finance PLC (which was concluded late last year).

First Guardian Equities (FGE) is one of the premier stockbrokers in Sri Lanka. A licensed trading member of the Colombo Stock Exchange, FGE focuses on a sound synergy between finely honed market research and avant-garde financial consulting in providing customized solutions to address clients imperative financial and investment needs. First Guardian Equities is the only Stock Brokering firm operating on the Colombo Stock Exchange with an International Certification for Systems Standardisation - ISO 9001-2008 from Moody International - UK.

Ranajn Hulugalle

A US-based Sri Lankan lawyer and President of Hulugalle Capital, a Las Vegas based fund management company, Ranjan Hulugalle is a Registered Investment Advisor, advising clients on wealth management, estate planning, and wealth transfer services in the United States. He has a Bachelor of Science degree with a concentration in Biology from Loyola Marymount University, as well as a Juris Doctorate and MBA from Georgetown University. Being a lawyer by profession he is a member of the Washington DC Bar. Hulugalle Capital is housed at 2487, Emerald Avenue Las Vegas, NV 89120, Phone: (702) 987-4607.

Accordingly market analysts stresses this as a more ‘Inside Deal’ that gives Win-Win Situation mostly to Lakshaman Bandaranayake where he will back Arjun Aloysius's 'Bond Frauds' by 'White-Washing' articles written by his LBO.lk editor Chamath Ariyadasa whilst EPF Department Insiders says that Dr. Harsha De Silva has promised to remove Lakshaman Bandaranayake’s name from EPF Black Listed ‘Big Black Book’ that lists EPF Defaulters and remove Lakshaman Bandaranayake’s name from Credit Information Bureau of Sri Lanka (CRIB) where Lakshaman had been listed as bank loan defaulter. These effects will take place before Lakshaman is eyeing to list Deshodaya Finance Company (DDFC) shares under George Stuart Finance PLC name in which case Ranjan Hulugalle has promised Lakshaman Bandaranayake to manipulate the share price of Deshodaya Development Finance Company (DDFC that appears as GSF or George Stuart Finance after listing) via First Guardian Equities and LBO, LBR, Vimasuma articles.

Further analysts note that Ranjan Hulugallle will soon do a deal with Colombo Stock Exchange to change the website via Ranjan Hulugalle's related company EFutures where EFutures will introduce a new Colombo Stock Exchange App soon for share trading to manipulate the market via a 'Mobile App' and 'Trading Algorithms Changing' to help Arjun Aloysius's manipulative trading in which case later Arjun Aloysius will buy the shares of EFutures to manipulate the country's only capital market and mislead the 22 million population of Sri Lanka.

Thilak Karunanaratne

Further, analysts and insiders at First Guardian Equities highlights that Ranjan Hulugalle has been scouting to sell his nearly 30% stake of First Guardian Equities with the new Deal Lakshaman Bandaranayake has agreed to finder a buyer or buy the Ranjan Hulugalle’s stake of First Guardian Equities under Deshodaya Development Finance Company or Sarvodaya SEEDS in which Lakshaman Bandaranayake the EPF Defaulter lead Deshodaya Development Finance will own a Stock Brokering company. 

Daya Muthukumarana 

In another development Sri Lanka's Central Bank and Financial Market Investigators pointed out that Sarvodaya SEEDS and Deshodaya Development Finance former Chairman Dayananda Muthukumarana has submitted a 'Fraud' Audit report in 2011-2012 era to receive the official Non-Banking Finance License for Sarvodaya SEEDS lead Deshodaya Development Finance whilst former Director General at the Stock Market Regulator's house -Securities and Exchange Commission (SEC) Channa De Silva  is the present Deputy Chairman of Deshodaya Development Finance company.

Meanwhile Sri Lanka’s Stock Market Regulator - Securities and Exchange Commission (SEC) insiders say SEC may not carry out an investigation when Ranjan Huugalle and Lakshaman Bandaranayake manipulates shares of Deshodaya Development Finance and George Stuart Finance (DDFC and GSF) since Dr. Harsha De Silva’s Ministry looks after SEC, CSE and EPF and ETF where Dr. Harsha has appointed the ‘Bankrupted’ Touchwood Investments major shareholder Multi Chemi Exports Chairman  Thilak Karunaratne as the SEC Chairman.

SEC Banned front runner; alleged Manipulator Dinal Wijemanne’s friend Ravi Karunanayake sends a letter to COPE?

Ravi Karunanayake

The Colombo District, United National Party (UNP) MP -Sandresh Ravindra Karunanayake (Ravi K) has recently send a letter to Chairman, Committee On Public Enterprises (COPE) requesting him to summon officials of the Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) over the fiasco in capital markets and boost investor confidence.

Investors praise at least one politician has woken up and at least written a letter thinking it would boost investor confidence. The Government, the Opposition and the Stock Brokers have not taken any significant steps to boost investor confidence here and abroad. The Government and Opposition politicians do not understand the Capital Markets and do not bother about it as it does not concern their electorates. They do also not know the importance of the Capital markets although it depicts the health of the economy.

The Opposition 'Big Talk' has successfully scared off all Government Institutions to stop even all legitimate purchases in the Stock Market when most company share prices have fallen over 50% from February 2011 to date. In fact the Opposition big talk has created over hundred thousand small investors cursing the Opposition while has been compounding losses for these institutions which have funds of the public.

The only good outcome of Opposition big talk is that the Government may at least now think of checking the theoretical media leaking officials of the SEC who are inefficient to take to task the "Pumpers & Dumpers" affiliated to the Government and the Opposition while some of the Stock Brokers  aiding and abetting manipulators also will be put into place.

However, the public laugh that the boosting investor confidence effort should not be commenced by Ravi K who does not know how to boost the confidence of investors. 

CSE Leaks learns that Late Lalith Athulathmudali’s that time proxy/nominee investor (it is a popular famous secret in cocktail circles) Ravi Karunanayake nourished Dinal Wijemanne at Ministry of Commerce and Consumer Affairs from 2001 under the United National Party Regime as the Director, Investments and Projects at the Ministry of Commerce and Consumer Affairs

Further, it is known in media circles and business  circles that the SEC Banned manipulator -Dinal Wijemanne CEO/ Director of Taprobane Securities was one time nourished as a top official under Ministry of Commerce and Consumer Affairs when Ravi Karunanayake was Minister of Commerce and Consumer Affairs of the Ranil Wickramasinghe led UNP Government in 2001. 

A report in Pakistan’s media outlines in 2002 that when a Pakistan delegation was invited to INTRAD 2002 exhibition organized by the National Chamber of Commerce & Industry in Sri Lanka Pakistani delegation had detailed discussions with a group of Sri Lankans led by Ravi Karunanayake and Prof. G.L. Pieris where Dinal Wijemanne represented Ministry of Commerce and Consumer Affairs as Director, Investments and Projects. 

Go to Link : http://majydaziz.blogspot.com/2011/05/at-saarcs-1985-inaugural-summit-in.html

In another development in 2001 an ‘Expression of Interest (EOI)’ advertisement published behalf of ‘Mahapola Higher Education Scholarship Trust Fund’ in the Sunday Observer outlines that for any clarification to contact Mr. Dinal Wijemanne, Director - Investment and Projects, Ministry of Commerce & Consumer Affairs on telephone number 94-1-312152 or email address dinal@commerce.gov.lk . 

Go to Link: 

http://www.sundayobserver.lk/2001/pix/ad_so-mahapola.html & http://www.dailynews.lk/2001/pix/ad_cdn-mahapola.html 

It was during 2001-2004 UNP Regime that Sri Lanka Insurance Corporation (SLIC) and Lanka Marine Services Limited (LMSL) was privatised and PERC was under the guidance of UNP Minister Milinda Moragoda where Dr. P.B. Jayasundera headed it as the Chairman and at the same era Dinal Wijemanne also held the position of Senior Manager of the Public Enterprise Reform Commission (PERC).

That is why although Ravi Karunanayake and so called Independent Economists is not mentioning about Dinal Wijemanne in their ‘Big Talks’ in television channels and parliament” a top UNP source told CSE Leaks.

Accordingly although an Independent Economist onetime who always lost money by investing in the Stock market (according to DFCC sources who knew  him at the time he was a small banker at DFCC)  gave a ‘Big Speech about the ‘Controversial NSB-TFC Doomed Deal’ at the parliament recently and he was cautious enough to protect the  SEC banned stock broker Dinal Wijemanne’s  name throughout without mentioning Wijemanne's name. 

"Independent Economist mentioned about Dinal Wijemanne's boss - the Bond King turned Ajith Lasantha Devasurendra may be without knowing the small financial assistance by Devasurendra to United National Party (UNP) led by the Opposition Leader and UNP Leader Ranil Wickramasinghe prior to the 2005 November Presidential Elections" another UNP insider revealed to CSE Leaks.

Extract from Ravi K's letter to COPE- "Over the last five to six months the country’s economy has been traversing through some turbulent times. If these trying times are a result of uncontrollable factors and world economic meltdown being one of there we can console ourselves and accept it. However, if it is owing to arrogance, ignorance, corruption and manipulative practices where insider trading is being pursued by a few at the expense of the majority we need to expose and eliminate these white collar fraudsters.

You as the Chairman have been alive and responsive to our requests to act on institutions such as Central Bank, SriLankan Airlines, Ports Authority, Ceylon Electricity Board, National Savings Bank, Lankaputhra Bank, EPF and Bank of Ceylon, etc.

The recent development of the National Savings Bank and The Finance Company Ltd. share purchase transaction reversal has led to exposing many problems, this only being the ‘tip of the iceberg’.

We also should bear in mind and recall with respect Indrani Sugathadasa, who a couple of months ago tendered her resignation in disgust trying to ameliorate the wrongs that were happening in the Securities and Stock Exchange. Considering her close political affiliation, it is nothing but right to commend her bold act of protecting her good name and also honouring the dignity of high office by resigning to prove a point.

Therefore, let us not lose this opportunity to take cognisance of the fact of her resignation and summon the Securities Exchange, the Stock Exchange, the former Chairperson and the present Chairman, the former Director General, the present Directors General and the senior officers of both institutions before COPE for immediate investigation.

I would look forward to your usual prompt and favourable response in order to restore confidence among the Sri Lankan foreign investors and the citizens of our country.”

Sri Lanka investors praise Dr. P. B. Jayasundera's action in terminating ‘Controversial NSB-TFC Deal’ at Colombo Stock Exchange!

Sri Lanka’s Dr. Punchi Banda Jayasundera had now become a ‘Terminator’ in island nation’s ‘Controversial Deals’, investors at Colombo Stock Exchange told CSE Leaks.

“It is good I think when he stepped down from Treasury Secretary Position in September 2008 after the Supreme Court Judgement; he told media that he will be taking some rest at home reading books before taking up new assignments; so since he came back to the seat from end of September 2009 after filing a motion I think he has learned a lot about Good Governance from reading books” a source told CSE Leaks.

According to market analysts and general public becoming a ‘Terminator’ in Sri Lanka’s Controversial Deals; Dr. Punchi Banda Jayasundera this time took steps to block a ‘Deal’ that was going to earn some ‘Bucks’ to Bond King Devasurendra, Anura Fernando, Dinal Wijemanne and Pradeep Kariyawasam – The husband of Present Chief Justice Dr. Shirani Bandaranayake -

Dr.Jayasundera this time said the finance ministry will issue a circular to set up investment committees at state entities to make equity purchases through a defined process with exposure limits, after terminating the 'Controversial NSB-TFC Deal'

"A new circular on investment committees will be issued," Jayasundera told reporters after releasing the finance ministry's annual report recently on Thursday the 24th May 2012.

Jayasundera had said that there will be a process where the committee will be protected from interference. His comments came after the sale of stock in The Finance Company PLC (TFC) whose liabilities exceed its assets by Rs. 3.7 billion by December 2011 at over 65% above market price to state-run National Savings Bank (NSB).

Meanwhile ‘Controversial Deal Terminator’ Dr. Punchi Banda Jayasundera had said that said there was no interference by ruling politicians on this matter and that NSB had halted the deal after Jayasundera intervened.

“Jayasundera had said he had told the board of NSB to stick to the bank's core business while a committee had been appointed to investigate the deal”

In Sri Lanka resignations over financial scandals are rare according to general public comments. And people opine that the country does not have an independent civil service to ensure rule of law or justice as the institution of permanent secretary was broken by successive constitutions in 1972 and 1978 paving the way to arbitrary rule.

However Dr. Punchi Banda had highlighted that there were Treasury nominees in many state entities but they did not necessarily have expertise in stock purchases.

"There are people who know better in these institutions. Also government entities have to depend on market participants to make investments," he had said to reporters adding that "If there is a defined process it will protect everyone. These institutions also have to set exposure limits."

Dr. Punchi Banda Jayasundera had said there was a justification for long term contractual savings institutions, including the EPF to invest in stocks and that some state entities had also rushed into stock when interest rates fell to improve returns.

However after Dr. Punchi Banda Jayasundera intervened to ‘Terminate’ Controversial ‘NSB-TFC Deal’ according to him all except one director of National Savings Bank (NSB)  had resigned and Sri Lanka's post master general had been appointed and was acting as chairman of NSB until the appointment of a new board.

Reports outline that only four directors were needed for a quorum and senior career officers of the bank had been unhappy at the deal, according to reports.

Meanwhile several general public, concerned investors at Colombo Bourse say that ‘Controversial Deal Terminator’ turned Dr. Punchi Banda’s immediate intervention is needed to prevent repeat of several purchases of stocks done by the Employees Provident Fund , including investments in Galadari, Nawaloka Hospitals, Central  Finance PLC, Ceylon Grain Elevators, Diesel & Motor Engineering (DIMO), Brown & Company PLC, LOLC, Eden Hotel, Richard Pieris & Company and Colombo Dockyard since they have been controversial and most of the time the sellers have been the Bond King Ajith Devasurendra led cartel that including many of his companies and ‘EPF Deal Contractor’ former collapsed bankrupt tea company - Gold Quest connected Fern Tea Chairman - Anura Fernando, Now SEC banned stock broker Dinal Wijemanne, Kattar Aloysius Grandson Arjun Aloysius, former ceylinco money broker Harsha De Silva led Navara Capital and few others. Sources close to Bond King Ajith Devasurendra outlines that Ajith Devasurendra had discretionary powers on one billion Rupee worth trading portfolio of LOLC.

History of ‘Controversial Deal Temrinator’ turned Punchi Banda Jayasundera

Dr. Punchi Banda Jayasundera has been in the civil service for the last 33 over years. Prior to his appointment as the Secretary to the Treasury, he was Deputy Secretary to the Treasury from 1997-1999, Director General, Department of Fiscal Policy and Economic Affairs in 1995, and Economic Advisor in 1990. He held several senior positions in the Central Bank of Sri Lanka before joining the Ministry of Finance and Planning.

In addition to the office at the Ministry of Finance & Planning, Dr. Jayasundera has also held office as Chairman, Public Enterprises Reform Commission, Senior Policy Advisor, Ernst & Young, and as consultant to the IMF and the World Bank on country assignments.

Dr. Jayasundera holds a Master’s and a Doctorate degree in Economics (1984) from Boston University, USA, a Master’s degree in Development Economics (1979 – 1980) from Williams College, USA; and a bachelor’s degree in Economics (1973) and Phil Economics (1974) from the University of Colombo, Sri Lanka.

Sri Lanka Gonibilla Price Band creator- Royalist - Former DFCC Fund Manager now SEC Surveillance Director Chandu Epitawala creates a 'Market Devastating' Press Release?

Chandu Epitawala - Then

Industry sources outline that twice best performed Second best capital market in the world till early 2011 Colombo Stock Exchange started to collapse since August 2010 when former fund manager of DFCC Bank and Namal Asset Management, Chandu Epitawala who is the present Director Surveillance of Securities and Exchange Commission submitted a paper considering to put a 10% 'Price Band' or 'Gonibilla Theory' for rising Colombo Stocks and when Sri Lanka’s tall thin accountant type Sujeewa Mudalige of Pricewaterhouse Coopers (PWC) provided his expertise to hamper the broker provided credit for retailers.

According to SEC insiders more recently the same Gonibilla Price Band Creator Chandu Epitwala had done and created a stock market devastating sentence by writing in a SEC Press Release that said 'There is a General Rule Change which will Prohibit employees and Directors of all market intermediaries to trade (buy shares and sell within six months of buying) except in the case of IPO purchases. Investments (over 6 months) are allowed.

Chandu Epitawala - Now

This in turn will affect the stock trading done by Sri Lanka's top billionaires, stock traders and investors as they are board of directors of many market intermediaries.

It is learnt from a Press advertisement of SEC that several licensed Commercial Bank's including Commercial Bank PLC (COMB), National Development Bank PLC (NDB), Hatton National Bank PLC (HNB), Sampath Bank PLC (SAMP), Bank of Ceylon (BOC), margin trading providers such as Seylan Bank PLC (SEYB), Pan Asia Banking Corporation (PABC), Divasa Finance, Asia Asset Finance and Ceylon Investment PLC (CINV) and Ceylon Guardian Investment Trust PLC GUAR) are also falling in to the category of 'Market Intermediaries'  where some top billionaires of the island nation who trade daily on stock exchange are on the Director Boards.

  

According to market sources Chandu Epitawala's 'Sentencing' will affect some of the top Sri Lankan Billionaires and stock market traders in Sri Lanka including Mano Selvanathan, Hari Selvanathan, Ajitha De Zoysa, Alex Lovell, Ashok Pathirage, Bond King Ajith Devasurendra, CSE Chairman Krishan Balendra, Harry Jayawardena, Dilith Jayaweera, Nimal Perera, Dammika Perera, Ishara Nanyakkara, and Dr. Sena Yaddehige.

"This definition will let all these billionaires to hold on to their equities for more than six months" top stock market analysts said.

Chandu Epitawala Exposed!

Passed out from Royal College in 1979 and went Switzerland to pursue languages and a course in Hotel Management. Later in 1989 went US to pursue University education. Obtained bachelors degree from Hawaii Pacific University and MBA from University of Texas at Arlington. On his return in 1995, Chandu Epitawala joined a fund management firm and later got seconded to DFCC bank. In 2000 went to Seychelles to manage funds for a wealthy individual. On second return in 2002, joined Public Enterprises Reforms Commission (PERC) the privatizing arm of the government. After four years there, in 2005 joined the Securities and Exchange Commission where he work at present devastated the stock market by writing a 'Concept Paper on 10% Price Band which he submitted to SEC' according to insiders.

How Will They Cancel TFC-NSB Deal on Today-Exclusive

Sri Lanka’s famous ‘King of Bonds’ former money broker Ajith Devasurendra lead Taprobane Holdings own Taprobane Securities which was recently involved in the controversial The Finance Company (TFC) and National Savings Bank (NSB) deal will soon announce its clarification on the cancelation of the ‘Deal’ today to Colombo Bourse, CSE Leaks learn.

“Accordingly ‘King of Bonds’ Ajith Devasurendra articulated and pioneered Taprobane Securities will write a letter requesting the transfer of shares of TFC from NSB Custodian account to Taprobane Securities Suspense Account’ market analysts told CSE Leaks.

“Further thereby Sampath Bank will get the opportunity to recover the loss of over Rs.390 million  and the market would return to normal” the analysts added.

Earlier CSE Leaks reported that Sri Lanka's state owned public deposit rich National Savings Bank bought a 13.02% stake of former Ceylinco owned oldest finance golden house of the island The Finance Company PLC (TFC) on 27 April 2012; after the transaction a filing by Sri Lanka's former Money Broker and Bond marketer Ajith Devasurendra lead Taprobane Securities said. However it is now been a question while Sri Lanka’s Bond Market Pioneer Ajith Devasurendra had represented the mother entity Taprobane Holdings’ Director Board, sources outline that Devasurendra had not been representing the board of Directors of Taprobane Securities, the stock brokering arm which Devasurendra’s junior Dinal Wijemanne-one of TFC Directors who shed shares to NSB at a premium price-is the CEO/Managing Director position of the entity.

On 27^th April National Savings Bank had bought 7,863,362 ordinary voting shares of TFC at an average price of Rs.49.74 per share. TFC was the largest contributor to the day's turnover with Rs.394.09 million and a total of 7,982,705 shares traded via 58 trades. Several crossings were done whilst TFC stocks changed hands in parcels of 2,904,983  and 4,237,400 shares at Rs.50 per share and 701,761 shares at Rs.45 per share whilst the sellers were believed to be Taprobane Securities CEO Dinal Wijemanne, Raynnor Silva and former Chairman of failed Tea Company Fern Tea Nirmala Anura Fernando who sold 50,000 shares at Rs.45 per share. Yogananda Perera and Nandadeva Perera who held TFC shares also sold their quantities on the same day whilst the TFC share opened at Rs.30 on April 27, and during the month of April, the TFC share had been trading between Rs.30-32.50.

On another development The Finance Company PLC (TFC), whose some directors are involved in a controversial share transaction National Savings Bank (NSB) made a quite surprising disclosure of a share purchase transaction of TFC shares by its Director Dinal Wijemanne who is also the CEO of Taprobane Securities. The disclosure which is as old as 3-weeks said Dinal Wijemanne the director recently sold nearly little over 2.9 million shares at Rs.50 on 27th April; had bought  4,983 shares at Rs 30 per share on 16th April, 2012 just one and half weeks before the selling transaction came in to effect.

But majority investors had raised concerns and questions since Wijemanne's selling transaction was disclosed to Colombo Bourse on 27th April (on the same day which transaction took place) whilst the buying transaction was disclosed way later on the 8th May 2012 according to reports.

Meanwhile it was reported that the Securities and Exchange Commission (SEC) will be meeting the Board of Directors of Taprobane Securities today in connection to the contentious The Finance - National Savings Bank deal, quoting a SEC top official.

“We have summoned the director board of Taprobane Securities, the brokerage involved in this deal for discussions. Last Friday we summoned Taprobane CEO/ Director Dinal Wijemanne for clarifications,” SEC Chairman Tilak Karunaratne had told reporters. He had also said that the SEC has ordered Wijemanne to provide all his explanations in writing by this Friday according to reports.

“We’ve told him to submit his explanations in writing by May 8. However, he had asked for time till this Friday,” Karunaratne had told reporters.

In the TFC-NSB deal Taprobane Securities had been the broker for the both buyer and seller. Meanwhile SEC Chairman had told reporters that this is the first default that has taken place in the history of the Colombo Stock Exchange in which NSB had not paid the sum of its buying transaction. He had also confirmed to reporters that the SEC is also currently investigating into any possible incidents of ‘Insider Dealing’ related to the TFC-NSB deal and said that the SEC officials last Friday visited the premises of Taprobane Securities and took into possession several documents and data that might be useful in the investigation process.

When asked about the actions that can be taken against Taprobane, Karunaratne had said that if there is proof of malpractice, the penalty can range from a temporary ban to the revocation of brokering license according to reports.

SEC Chairman had also noted reporters that as the regulator, the SEC will be doing its maximum to discover whether; had there been any wrongdoing with regard to this deal, and said the SEC has also drawn the attention of the Central Bank on the matter.

White Wash?

Having a Board Meeting with Treasury officials on the ‘Reconfirmation of the Cancellation of the Controversial TFC-NSB Deal’ on Tuesday May 8 (from 3:00 p.m. to 6:00 p.m.) at NSB 

Premises the bank’s Board of Directors which stood silence from 27^th April issued a statement to some media organizations of the country.

NSB said the following in the Statement:

“The offer from TFC initially came to NSB to subscribe for their voting shares in January 2011. The bank carried out a detailed analysis on the TFC and was willing to purchase the voting shares up to approximately 8.33%. However, since the share issue had been oversubscribed, we were not in a position to proceed”

“Similarly, the bank received an invitation from a stock broker to purchase voting shares in March 2012. Since the bank had already carried out a detailed analysis in January 2011, the Board Sub Committee on Corporate Lending and Equity Investment decided to relook at the investment from a strategic initiative point of view with further analysis. Having done a further analysis, a favourable consideration was given to purchase voting shares of TFC, amounting to 10%-15%”

“However, since the Board was of the view that benefits of this investment are not as strong enough to proceed with, a decision was taken not to make the payment, due on this transaction”

“The above decision was conveyed to the Secretary to the Treasury Dr. P. B. Jayasundera at the meeting held on 8 May 2012 with the entire Board of Directors of NSB. Other relevant parties too have been informed of this development, accordingly. The Secretary advised the Board that the Bank should not move out from its core activity and advised to promote NSB as a premier savings bank without exposing its risk profile to maintain public confidence”

“As a socially conscious and a responsible State-owned financial institution, we wish to give a strong pledge to the general public that we would continue to uphold all traditions of our bank and as done in the past, continue our quest in having the depositors’ and other stakeholders’ total interest foremost in our minds in the future as well as the leader in developing you and the country.”

Meanwhile, Sri Lanka’s Pink Paper said the county’s premier business chamber, Ceylon Chamber of Commerce (CCC) which has been so far silent about the state-owned pension funds and institutions making peculiar investments in the market, Tuesday issued a statement praising the timely intervention by the officials in the TFC-NSB deal.

“The Ceylon Chamber of Commerce (CCC) notes with concern the recent transaction of approximately 13% of The Finance Company PLC. The chamber believes that ensuring integrity and transparency are vital to maintain investor confidence in the Colombo Stock Exchange (CSE) for the capital market to buyer and seller, Taprobane cannot avoid its responsibility towards the completion of this transaction” Pink Paper said.

However, on Tuesday, Banking Watchdog Central Bank Governor Ajith Nivard Cabraal had told reporters that as the banking regulator, it has no role to play in the transaction. Cabraal had told the media that the banking regulator in a broad sense generally defines the parameters within which banks can engage in equity investments, and said that thereafter it is "their business."

Sri Lanka’s Financial Market Watchdog discusses that LOLC may cause another financial industry crash?

LOLC burdened with over Rs.65 billion (US $ 520 million) debt-Analysts

Sri Lanka’s financial market watchdog lead by the Board that is handling monetary matters had discussed a crucial issue that may cause another financial industry downturn in the country which would be a result of former veteran lady banker Rohini Nanayakkara and vehicle dealer Ishara Nanayakkara lead Lanka Orix Leasing Company which has an alliance with the Japanese Financial giant Orix Corporation, CSE Leaks learns from inside sources of the financial industry.

Driving forces of LOLC

Accordingly sources outline that several transactions that had happened among LOLC group lead fame and new buyouts had caused LOLC financials weaker and weaker leading the group in to a debt portfolio valued to the tune of Rs.65 billion or nearly US $ 520 million.

Further financial watchdogs had also opined that it may effect on another financial industry crash that is more problematic than the Ceylinco lead Golden Key fiasco and other related subsidiaries that started with a Rs.26 billion financial fraud in an unregistered public deposit canvassing credit card entity.

Sri Lanka cancels an unethical deal of Fake Stock Market Bulls

Sri Lanka’s top citizen appointed by the people for the rule of the island had cancelled the controversial National Savings Bank’s (NSB) deal pioneered by government appointed NSB Chairman Pradeep Kariyawasam that involved in buying a 13.02% stake of former Ceylinco owned The Finance Company, a deal pioneered by former First Capital Money Broker Ajith Devasurendra’s Taprobane Securities lead by Dinal Wijemanne,  top Sri Lankan’ Secretariat sources revealed CSE Leaks.

Accordingly a statement by the Top Sri Lankan’s Office had said the deal had been cancelled in a release at 8 p.m. to public.

Sri Lanka's state owned public deposit rich National Savings Bank bought a 13.02% stake of former Ceylinco owned oldest finance golden house of the island The Finance Company PLC (TFC) on 27 April 2012. After the transaction a filing by Sri Lanka's former Money Broker and Bond marketer Ajith Devasurendra lead Taprobane Securities said.

National Savings Bank had bought 7,863,362 ordinary voting shares of TFC at an average price of Rs.49.74 per share. TFC was the largest contributor to the day's turnover with Rs.394.09 million and a total of 7,982,705 shares traded via 58 trades. Several crossings were done whilst TFC stocks changed hands in parcels of 2,904,983  and 4,237,400 shares at Rs.50 per share and 701,761 shares at Rs.45 per share whilst the sellers were believed to be Taprobane Securities CEO Dinal Wijemanne, Raynnor Silva and former Chairman of failed Tea Company Fern Tea Nirmala Anura Fernando who sold 50,000 shares at Rs.45 per share.

Market Analysts said that after the deal NSB directors had been compelled to cancel the payment of the transaction cost that amounted to over Rs.390 million with the instructions of the Top Sri Lankan who had later scolded the NSB Chairman for carrying out the transaction.

Not knowing the circumstances Sampath Bank PLC the Central Depository System (CDS) settlement custodian of Taprobane Securities had then paid the total sum to main sellers including Dinal Wijemmane and others.

Since NSB had not paid to the transaction after losing the payment of over Rs.390 million Sampath Bank had then cancelled settlement for other share transactions that took place after 27^th April behalf of its other brokering clients which Sampath Bank acts as the settlement custodian, according to analysts.

Meanwhile it is learnt from inside sources that shares that were sold by Dinal Wijemanne were actually owned by Ajith Davasurendra and Nirmala Anura Fernando whilst on 3 May 2012 The Finance Company PLC (TFC) in a filling to Colombo Bourse said that company wish to inform Dinal G. Wijemanne has resigned from the board of directors of The Finance Company PLC (TFC) with effect from 2 May 2012.

However the company added that Dinal Wijemanne has been again appointed as an Alternate Director to Nirmala Anura Fernando - Independent Non Executive Director of The Finance Company PLC with effect from 2 May 2012.

However TFC on Wednesday issued a statement to Sri Lanka’s Pink paper writer defending NSB’s buy.

Pink Paper quoted that analysts said that it was NSB’s prerogative to clarify or deny allegations levelled by UNP MP Dr. Harsha De Silva over the investment of Rs. 400 million to buy a 13% stake amounting to nearly eight million shares at Rs. 50 each, when the TFC stock was trading around Rs. 30.

Sri Lanka’s Pink Paper said quoting analysts that “If the TFC is making a statement and in the process divulging various price-sensitive information, then such a move may have had the TFC Board sanction. In that context then the Board as well as the director who sold can run the risk of insider dealing,” analysts opined. Among major sellers last Friday were shareholder Director Dinal Wijemanne, who incidentally is also the CEO of Taprobane Securities, the broker picked by NSB for the purchase.

According to Pink Paper NSB’s buying into TFC stirred up a controversy due to multiple reasons. One is the alleged risk of public savings when NSB makes such investments into a company which has a negative net worth of Rs. 23 per share and is saddled with Rs. 9 billion retained losses.

Though the Rs. 50 is being perceived as expensive, sellers said the 13% stake had been originally bought in September 29011 at Rs. 48 per share, suggesting that NSB paid only Rs. 2 extra.

However, others pointed out that when there were thousands of those who were stuck with shares unable to sell at lower prices after having bought last year at higher level, because of the “Arranged Deal,” sellers of TFC shares indeed were the most fortunate couple in the market.

On the day the deal went through, a few others who had relatively large blocks offered to sell, however the NSB broker had declined to buy. Analysts said it was important for NSB to collect quantities from the market rather than buying from a favoured few. Nevertheless, NSB did mop up 98.5% of the 7.982 million shares of TFC traded on Friday, whilst the major sellers accounted for 89% or 7.1 million shares comprising 2.9 million each (Dinal and Rayynor), 669,700 (Nandadeva Perera) and 667,700 (Yogendra Perera).

In the Pink Paper in a statement, the UNP’s MP and its Chief Spokesman on economic matters, Dr. Harsha De Silva had said: “We note with serious concern the purchase of close to eight million shares of TFC by the NSB at 65 per cent above its current market price. What logic was employed to pay Rs. 49.75 for shares of this high risk and loss-making financial institution when it was last traded at the Colombo Stock Exchange for only Rs. 30 is more than a puzzle.”

“Perhaps one could argue that it is the business of the board and management of any institution to pay whatever price it feels is right for anything they purchase. But NSB is not, by any stretch of the imagination, just another institution. It is absolutely the only bank whose deposits are fully guaranteed by the Government of Sri Lanka as expressed explicitly in the statute governing the bank: NSB Act No. 30 of 1971,” the UNP MP had said.

“This necessarily means that NSB must maintain a risk-averse investment profile and transactions like the one just concluded are not what it should be engaging in,” Dr.De Silva had said.

In the Pink Paper Dr. De Silva had alleged that the husband of the Chief Justice of Sri Lanka, Pradeep Kariyawasam, who continues to enjoy power and position as the Chairman of the NSB among several other plum postings offered by the Government, was a glaring example of conflict of interest.

 “A number of colourful personalities including Anura Fernando whose name has been linked to the now-abandoned Central Bank investigation on the Gold Quest pyramid scam and a former Director of Capital Reach Leasing, a company in which Ajith Nivard Cabraal had a significant interest, also sit on its board,” alleged the statement by UNP MP.

Await Updates

Questionable New Plan of CSE?

CSE Leaks exclusively learn from market sources that Colombo Stock Exchange’s (CSE) officials had consulted a global management consultant firm; McKinsey & Company, Inc. branch office in India to provide a better plan to the next development phase of Sri Lanka’s only capital market.

“CSE consulted McKinsey & Company, Inc. two months ago and so far nothing has happened and it was recommended by the CSE Chairman and its Chief Executive Officer” a top source said to CSE Leaks.

It is also learnt that so far McKinsey & Company had not been able to get an official appointment from Sri Lanka’s top treasury secretariat of the island nation to discuss the development plan for the capital market of Sri Lanka.

Meanwhile it is learnt from market sources that McKinsey & Company had been interviewing top Board of Directors of CSE, Stock Brokers, Unit Trusts and largest investors for nearly month since they started to develop a plan for the growth of CSE.

McKinsey & Company in India is established in Gurgaon in Haryana (close to New Delhi) and Mumbai whilst Gurgaon office is housed at Plot No. 4 Echelon Institutional Area, Sector 32 Gurgaon 122001, Haryana, India having phone numbers +91 (124) 661 1000 and fax number +91 (124) 661 1400.

The McKinsey Knowledge Center is located in Gurgaon and is the largest hub of knowledge professionals within McKinsey according to reports. McKinsey is said to be an advisor and counselor to many of the most influential businesses and institutions in the world and serve more than 80 percent of Fortune magazine’s list of the Most Admired Companies.

As a global management consulting firm that focuses on solving issues of concern to senior management; McKinsey serves as an adviser to many governments and institutions too. It is recognized as one of the most prestigious firms in the consulting industry and has been a top employer for new MBA graduates since 1996 globally.

Why GREG drastically fell, was it to facilitate Nimal Perera, or Did Nimal Perera sell his GREG shares?

Nimal Perera sipping some Wine
at a High Exclusive Corporate Event

High Exclusive sources close to Colombo Stock Exchange revealed CSE Leaks that High net worth investor Nimal Perera had sold his GREG or famous Environmental Resources Investment (ERI) PLC shares before the week ended 23 January 2011 as the share shot up high again to above Rs.100 and along with slight appreciations in the warrants.

However, as at 30 September 2010, according to Quarterly report of ERI PLC Nimal Perera had 2.34 million GREG shares which amounted to 0.75% of the company.

Some sources say that he has sold this stake to put money for Vallibel One IPO where he is also on Director board; However it could be now derived according to our analysis may be that Nimal Perera had applied for a few more shares of Vallibel One to profit from CSE when it is listed and since he would have applied by a Bank Guarantee he would have sold his GREG shares to partly settle the money for Bank Guarantee’s Bank Charges. 

No Perera’s for The Finance PLC share issue-Official?

Although, lots of Institutional and a few high net worth investors had applied for recently concluded The Finance Co. (TFC) PLC secondary IPO, A top official from TFC revealed CSE Leaks that none of the Big Time players of Sri Lanka’s stock market had applied to the share issue adding that its only genuine people who have applied to shares.

“No Pereras, its only genuine people who have applied” source from TFC told CSE Leaks.

This in turn resembles according to some corporate community in the country that ‘Perera Duo’ who is bullish in Colombo Stock Exchange apart from their Casino business in the country are not ‘So Genuine’, which is questionable to CSE Leaks.

However on the other hand when The Finance Co. PLC official says that ‘Pereras are not Genuine’ it is arguably questionable whether The Finance Co. PLC’s Founder Chairman, Dickman’s Road Financier Lalith Kotelawala who master minded Rs.26 billion South Asia’s largest ever Financial Scam in Golden Key with Khavan Perera are genuine people in Sri Lanka.

Sri Lanka Market Follower Reveals Watch Dog’s ‘Goni Billa’ Price Band Theory?

By CSE Leaks Professor

The so called unexplained ‘Goni Billa’ Formulae or the 10% Price Band Theory implemented by the Buckle Tight Watch Dogs of Sri Lanka’s Capital Market was revealed to CSE Leaks by a leading market follower in the country.

“According to our studies if a company has more than 30% of Public Float, that share will never get caught to ‘Goni Billa’ Price Band” said the well versed market analyst to CSE Leaks.

“That is why REEF.N was never caught with Price Band. I guarantee similarly that if Touchwood (TOUCH) share reach Rs.500 within a day it will never get caught to ‘Goni Billa’ because there is no major shareholder for Touchwood. It is 100% guaranteed Touchwood will not get caught to 10% Price Band” he concluded.

Ceylinco to sell the Model ‘Ceylinco City’ in Colombo

The Finance PLC to sell two iconic properties of the company at R.A. De Mel Mawatha

Sri Lanka’s oldest Golden financial power house, Ceylinco owned The Finance Company (TFC) PLC which had been in the forefront of creating confidence in country’s finance industry continuously for four generations from Great Grand Fathers’ to Grand Sons has recently call for sealed offers to sell two iconic properties which are the benchmarks of the company.

In a recent advertisement in weekend news papers island nation’s oldest finance company The Finance Company (TFC) PLC had invited for offers to outright purchase of two commercial properties, including its head office at No. 55, R.A. De Mel Mawatha, Colombo 04 and No.9A, De Fonseka Place, Colombo 04 amidst a recent secondary offer by the company to raise funds through a public share issue which is offering 40 million ordinary voting shares at Rs.40 per share.

The four storey commercial building property at No.55, R.A. De Mel Mawatha is built on a 72.65 perches land covering 17,800 square feet with ample parking facilities added with access to two road fronts including Gower Street. The other two storey commercial building covering 2500 square feet is built on 13.75 perches land which is just 25 meters from R.A. De Mel Mawatha and 50 meters from Galle Road, in Colombo.

Accordingly any interested party could send their offers titled ‘Offers for the purchase of Commercial Property’ indicating the either property name out of two on the top left corner of the envelope to reach the company’s Assistant General Manager-Administration before the noon of 28 January 2011.

The advertisement further said that prospective buyer should deposit a refundable fee of Rs.250,000 in cash with  TFC, prior to obtaining the title documents of each property while once the buyer is accepted; the buyer should pay 25% of the offer within two working days and the balance with next 14 days whilst the refundable deposit will not be refunded at an instance where buyer delays the full payment of the property.

R.A. De Mel Mawatha which was formerly known as Duplication Road was the central hub Sri Lanka’s former most diversified conglomerate Ceylinco Consolidated, where many head offices of Ceylinco subsidiaries were located including Chairman Lalith Kotelawala’s house and Ceylinco Consolidated head office which was also the consular office of Honorary Consulate for Singapore.

Many Sri Lankans arguably called R.A. De Mel Mawatha as ‘Future Ceylinco City’ as many subsidiaries such as Ceylinco Consolidated, Ceylinco Shriram, Ceylinco CISCO (Now CERTIS Singapore), Ceylinco Fast Cash, Golden Key Credit Card Company, The Finance Co. PLC, Ceylinco Building Society, Lalith Kotelawala’s House at No.28, Elibank Road, American National College (ANC) are all housed in the close proximities of the Road whilst many ‘Big Properties’ at R.A. De Mel Mawatha was once owned by Ceylinco Group.

However, as at today only Punarjeeva Karunanayake advised by Jagath Alwis is been able to carry out Ceylinco’s Multi Million Education business with ANC and Wycherley International School  while securing some of the Premier R.A. De Mel Mawatha properties owned by Ceylinco.

While its main properties are up for sale The Finance Co. PLC had started issuing 10% of the value of its deposits by way of non-voting shares to company’s depositors due to the collapse that resulted after Ceylinco owned Golden Key shutting down its operations without paying back its Rs.26 billion worth depositors.   

GREG So Called Big News: Environmental Resources to announce platinum subsidiary sale?

The all time popular stock since 2009 among Sri Lanka’s listed companies Environmental Resources Investment (ERI) PLC or much popular GREG had recently sold its major stake in a platinum company through its offshore investment company, Environmental Resources Ltd. in British Virgin Islands according to a top stock market analyst in the country. The company will announce the sale of its platinum mining firm’s stake according to a Director type of a leading stock brokering house .

Director Research type said to CSE Leaks that Colombo listed Environmental Resources Investment (ERI) PLC had recently sold a portion of its foreign owned stake at Eastern Platinum Ltd amounting to 22 million shares through Toronto Stock Exchange (where Eastern Platinum Ltd is listed) and that money which ERI owned Environmental Resources Ltd in British Virgin Island would be utilized for a new investment.

“I don’t know why Environmental Resources is delaying their announcement” said Director Research type who is also a top Analyst.

However, Environmental Resources Ltd. registered in British Virgin Islands had 24 million shares of Eastern Platinum valued at US $ 35.5 million (nearly Rs.4 billion) according Environmental Resources Investment (ERI) PLC Annual Report for the Financial Year ended in 2010.

When contacted by The CSE Leaks, the Environmental Resources Investment (ERI) PLC’s Manager Corporate Affairs Harshanee Deshapriya said that “If there is such a sale we will inform it to market in due time”. However, none of the Directors of ERI PLC were not available for comments, at the time of going to press.

Meanwhile, as per reports nearly 32 million shares of Eastern Platinum had changed hands in Toronto Stock Exchange on January 18, the date of which Environmental Resources is said to have done the transaction according to market sources and Director Research Type.

In July 2007, UK Based Hedge Fund Manager, Lionhart Advisors Group headed Lionhart Investments Ltd. acquired a controlling stake in Sri Lanka’s Walker & Greig, a low performing listed shell company at the time by retiling it as Environmental Resources Investment (ERI) PLC, for Rs.76 million and had turn around Sri Lanka’s Colombo Bourse at the peak of its performance since end of war while making the ERI PLC a group that come in to rescue and acquire Sri Lanka’s sick companies such as Dankotuwa Porcelain PLC (DPL), Ceylon Leather Products PLC (CLPL), Colombo Pharmacy PLC,DNH Financial (Pvt) Ltd, Enterprise Technology (Pvt) Ltd, Olancom (Pvt) Ltd, Roomsnet International (Pvt) Ltd, and South Asia Textile Industries Lanka (Pvt) Ltd.

In December 2009 Environmental Resources Investments PLC (ERI), announced it was acquiring 100% of Environmental Resources Limited (ERL), “A company incorporated in British Virgin Islands and holding assets of equity and debentures focusing in the platinum mining industry in South Africa, including Eastern Platinum Ltd”.

Accordingly, ERI agreed to pay US $ 76 million to acquire all of British Virgin Island based ERL from Osiris International Trustees (OSTI) over a period of time through an installment payment of ten tranches with Sri Lanka’s Exchange Control Approval while ERI PLC had so far paid 3 tranches via the ERI’s rights issues and warrant conversions on 6 April, 19 May, 2 November 2010 in the sums of Rs. 432,454/-(US $ 6,426,740.24) and Rs. 714,792,266 (US $ 6,261,868.30) and Rs.606,100,000 (US $ 5,406,779.66) to OSTI to date.

On the other hand, Lionhart Investments continues to remain as the biggest foreign investor in Sri Lanka’s stock market being the major shareholder (over 80%) of Environmental Resources Investment (ERI) PLC.

Meanwhile, according to global hedge funds sources, Lionhart Hedge Fund uses Toronto Stock Exchange as a capital market platform where the Hedge Fund could gain 'high profits in a short period of years and exit at the right time' through divesting its stakes in listed companies in Toronto.