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.

Was it the School Days ‘Match Fixing’ that helped them to do ‘Fixed Stock Market Deals’, Did these two individuals teach ‘Match Fixing’ to Sri Lankans?

Sri Lankan ‘Bond King – Ajith Devasurendra’ Exposed by industry analysts

Ajith Lasantha Devasurendra

NSB Chairman Pradeep Kariyawasam

Several stock market analysts and many retail and institutional investors of Colombo Stock Exchange has expressed concerns whether it was school day cricket experience that helped some top corporate executives in Sri Lanka’s finance sector to play out with hard earned savings of the majority of public or the tax paying citizen’s money in the island nation.

High on the heels of exclusive revelations of NSB-TFC Deal that involved former Browns group employee now influential personality who sits on NSB Board as Chairman Pradeep Kariyawasam and former money broker bond and securitization consultant Ajith Devasurendra; according to many investors of the island it has been probably the ‘Cricket’ the famous sport in Sri Lanka that had taught them to do ‘Unethical Fixed Stock Market Deals’

Cricket has been a much popular game in Sri Lanka and since post 1996 ‘World Cup’ island nation’s several cricketers have come in to the spotlight of ‘Match Fixing’ among international and local community.

However several cricket fans and the general public had now  raised concerns and curiosity with latest developments in Sri Lanka’s financial and capital market industry whether the money management of the country has gone into a few  good old school cricketers who played for Sri Lanka’s premier Boys School in Colombo 07 (which nourished top professionals and politicians in the country) at a time when Sri Lankan’s did not know about match fixing.

Match Fixing is termed to be a dishonest activity to make sure that one team or an individual wins or lose a particular sports match while several sport deal makers get money in ‘Underhand Deals’.

In fact former money broker and First Capital Group Chief Executive officer (CEO) Ajith Lasantha Devasurendra was ‘Stylish Right handed middle order batsman and Right-arm off-spin bowler and headed the Royal College of Colombo’s 1981 Cricket Team.

And former Sri Lanka Insurance Chairman (SLIC) now National Savings Bank (NSB) Chairman Pradeep Kariyawasam who was a player in Royal College Cricket Team was also the Vice-Captain of the Royal College Past Pupils Cricket Team in 1980 when the school was celebrating the 100th Celebration of ‘The Battle of The Blues’. Pradeep G. S. Kariyawasam was in fact  a Third year player and Right handed opening batsman and scored several half centuries in School Cricket history of Royal College Colombo. Kariyawasam’s brother Prasanna N. S. Kariyawasam also captained Royal College Cricket Team in 1975.

Ashantha De Mel

On another development it is surprising to note that another cricketer from the same school; Ashantha Lakdasa Francis De Mel (born 9 May 1959, Colombo) who was involved in Sri Lanka’s controversial oil hedging deal that lead the country to lose billions and also lead some local and international banks in the country to report billions of losses when Ashantha De Mel was the Chairman of state owned oil utility Ceylon Petroleum Corporation.

Ashantha De Mel is a former Sri Lankan cricketer and selector for the national team. He was one of few Sri Lanka bowlers in the 1980s who could get the ball to anything above medium pace, and he was also said to have the ability to get the ball to swing out. He only played one Test match outside the Indian subcontinent, which may explain why his Test average is so high, as conditions there are generally not thought suitable for swing bowlers. He often made small contributions with the bat, and only made ducks three times. He was educated at Isipathana Vidyalaya Colombo up to ordinary level and then moved to Royal College Colombo.

How did Ajith Devasurendra became ‘The Bond King of Sri Lanka’

According to market analysts, primary dealers and top investors in the country Ajith Lasantha Devasurendra has earned the name "Bond King" as he leveraged in billions and bought bonds.

Rohini Nanayakkara

Ajith Lasantha Devasurendra currently serve as the Managing Director and Chief Executive Officer of Taprobane Holdings Limited. Mr. Devasurendra earlier served as Group Chief Executive Officer of First Capital Group prior to his position at Taprobane. According to reports he has over 30 years experience both in Sri Lanka and overseas in the financial sector. Several Sri Lankan financial reports outline that Devasurendra was also instrumental in pioneering the money broking and Government Securities markets in Sri Lanka and he had served as a consultant to PricewaterhouseCoopers, Bombay. 

However, a former Chief Executive (CEO) of First Capital recently explained to CSE Leaks how Ajith Devasurendra was so bold in becoming the 'Bond King' of Sri Lanka. “Ajith Devasurendra gave a room in the First Capital premises to Mano Tittawala, when he was the Chairman Peoples Bank and put a First Capital employee as the head of the Treasury in Peoples Bank. Then got a high leverage for his large purchases and when the Bond Prices collapsed Devasurendra sold all the Bonds to Peoples Bank.”

This is how Devasurendra started his ‘Bond King’ career in island nation by letting state owned banks (that has public deposits) to run into billions of losses.

“Following years later Ajith Devasurendra got leverage from Head of Treasury of Seylan Bank and when the next time the Bond prices collapsed Devasurendra sold all his personal Bonds to First Capital making First Capital loose a few hundred millions” our source said.

Dharma Dheerasighe

Our source went on to say that finding about when Ajith Devasurendra’s ‘Fraudulent White Collar Criminal Activities’ – “Ajith Devasurendra who was then Managing Director of First Capital and its Chairperson Rohini Nanayakkara were going to be charged by the Chairman S. K. Wickramasinghe and Hemeka Amarasuriya but before that they left the company and sold their shares to Singer Group and Sumith Guruge.” 

According to our sources there after Rohini Nanayakkara introduced popular vehicle dealer Ishara Chinthaka Nanayakkara and they all started the Taprobane Group with Rohini Nanayakkara as the Chairperson and appointing her also to the LOLC group as the Chairperson. Several industry sources also outline that an Assistant Governor of Central Bank who is now the Deputy Chairman of Commercial Bank PLC Dharma Dheerasinghe was instrumental for ‘Ajith Devasurendra’ having the best information to be regarded as the "Bond King".

Dharma Dheerasinghe served as the Deputy Governor of the Central Bank since May 2009. Prior to this he was the Assistant Governor since 2004.

From September 2007 to January 2010 he was released to the International Monetary Fund (IMF) where he served as the Alternate Executive Director for Bangladesh, Bhutan, India and Sri Lanka.


In another development it is now learnt by CSE Leaks that Dharma Dheerasinghe's wife now an Assistant Governor of Central Bank was managing and overlooking the Investment rationals of country's largest Pension Fund Employees Provident Fund (EPF) being the Superintendent of EPF. One time since 2009 Ajith Devasurendra lead fame including Ishara Nanayakkara, Arjun Aloysius, Navara Capital lead Harsha De Silva 'Dumped' so many stocks to making EPF the cash 'Pump' by getting rich at the expense of Sri Lanka's working populations hard earned savings. 

Malik Cader

 Meanwhile, top insiders said to CSE Leaks that ‘Ajith Devasurendra’ celebrated his last Birthday as a ‘King’ at Eden Hotel (before closing it down for refurbishments’ with  taking out for the weekend all those who helped him in hundreds of corrupt transactions in the last few years. The invitees included former up-stair kicked shame vested interests pursued regulator Malik Carder - who protected Ajith Devasurendra and his CEO Dinal Wijemanne in dozens of ‘Pump & Dump’ Colombo Stock Exchange ‘Scams.’ Some opine that Malik Cader finally invested some money he earned by protecting these individuals in Ajith Devasurendra lead investor consortium owned " Amethyst Resort" in Passikudah which is a unit of Amethyst Leisure (Pvt) Ltd.

Not the First ‘White Collar Crime’ together!

Bar Tenders’ circles and Cocktail circles in Colombo outlined to CSE Leaks that NSB Chairman Predeep Kariyawasam and Ajith Devasurendra were finalizing the terms at the Pub at Excel World the day before the corrupt transaction of The Finance shares being bought by NSB happened. However, Ajith Devasurendra and Dinal Wijemanne have been in the last two months planning and going through all hurdles to sell The Finance shares to NSB said a close confidant of a Director of NSB, to CSE Leaks.

“This is not the first time Pradeep Kariyawasam and Ajith Devasurendra created a mess in a large Government Financial Institutions. When  Kariyawasam was the Chairman of Sri Lanka Insurance Corpaoration (SLIC) , Ajith Devasurendra had got Pradeep Kariyawasam recommend to buy a portion of NDB (National Development Bank PLC) for LOLC when the other Directors said what was approved was to buy NDB shares via SLIC and Employees Provident Fund (EPF) in 2009.

According a then SLIC served top Director; SLIC that time got the approval from Treasury Secretary Dr. P.B. Jayasundara  to buy up to a nearly 16% of NDB Bank (NDB Bank shares held by Vijay Eswaran led Gold Quest) through SLIC and EPF at an attractive price.

“However that time going against the SLIC Investment Committee and Boar Approval Pradeep Kariyawasam –Chairman of SLIC – September to December 2009 - went alone and promoted a part stake of NDB to LOLC” our source told.

“Kariyawasam was on his own and he was disagreeing on many board decisions that were favoured by majority of board members. So we decided to bring this issue to note for higher authorities. Finally the Board was dissolved and Pradeep Kariyawasam was tipped to be the NSB Chairman through influence” the same source told to CSE Leaks adding Kariyawasam had done so many controversial deals at SLIC too.

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’s Buckle Tight Regulator may go home by end of 2011?

After many tight regulations he took to curb investors and brokers from so called manipulations since his appointment in 2010; Sri Lanka’s buckle tight regulator Malik Cader had been asked to leave from his position of Director General (DG) at the Securities and Exchange Commission of Sri Lanka; CSE Leaks learns.

'Accordingly by a special Cabinet paper decision he had been asked to leave his office', reports reveal. “He had asked for more time till 31 December 2011  but he will be removed early as 31 October 2011” a source close to SEC told CSE Leaks.

SEC Director Malik Cader at Aquaventure Dubai Water Park at  Atlantis Hotel at Dubai,
United Arab Emirates. Search for Malik Cader in facebook and
 investigate his investing friends in CSE
go to link: http://www.facebook.com/malik.cader?sk=friends 

Since the time when Cader took the DG seat he had been implementing so many rules in terms of regulation to CSE in what called to be the ‘Moves that are taken to develop a disciplined capital market in the country’. However it is now learnt from various stock market sources that although Malik Cader was acting as a highly disciplined regulator he had a circle of friends who had pushed up illiquid shares that has no value in the CSE; and those friends never got caught to Cader’s Rules.

“There’s an to head of a stock brokering firm who is called to be the Cashier of Malik” many other sources from Colombo Stock Exchange told CSE Leaks adding that industry officials are aware that particular top official charged money from ‘SEC caught investors and brokers’ telling them that he can sort the matter with Director General of SEC at several occassions.

At a time when Sri Lanka’s tourism is booming, in another development Sri Lankan stock market investors had been surprised by a new Hotel Development project coming up in tourism booming Pasikudah beach valued at an investment of nearly Rs.220 million or US $ 2 million that is yet to be constructed which is called to be a project jointly owned by a regulatory official at SEC and a head of a stock broking company with couple of Investors. “It is said this Leisure project coming up at Pasikudah is constructed by a capital market watchdog official’s father in law who runs a construction firm and who is a top architect in the island nation"Sources added. Now it is also learn from sources the Hotel is nearing completion.

Since Sri Lanka’s capital market watchdog got a new official, Malik Cader as the Director General of the Securities and Exchange Commission with effect from 2 November 2010, Sri Lanka’s Browns fame led subsidiaries and associates including Hydro Power Free Lanka (HPFL), Free Lanka Capital Holdings (FLCH), Browns Investments (BIL) had already been listed whilst Agstar Fertilizers, Sierra Constructions is yet to be listed in Colombo Bourse after an IPO or through ‘Introduction’ after a Private Placement. It is also learnt that several Browns fame investors made ‘Big Deals’ at a time when Malik Cader head the seat as DG in the capital market watchdog’s house in the island.

On the contrary ever since Securities and Exchange Commission Director General Malik Cader was appointed to DG seat Colombo Stock Market performance had been gradually dipping whilst retail investors had left market time to time since early January 2011.

Surprisingly when a published article in Sri Lanka’s Pink Paper;  Daily FT on 21 October 2011 questioned whether SEC DG ‘Malik Cader Out or In?’ the market indices shot up whilst stock prices soar with investors flocking up to CSE about the Good News that outlined the future of Malik Cader in Sri Lanka at the capital market watchdog’s house.

Joined as a Press Officer to SEC in mid 1980’s Malik Cader was the Director-Legal and Enforcement prior to being DG at the capital market watchdog’s house in Sri Lanka.