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.

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.