Central Bank Extends Business Suspension of Perpetual Treasuries Limited

The Central Bank of Sri Lanka (CBSL) has extended the suspension of business operations of Perpetual Treasuries Limited (PTL), maintaining restrictions on the controversial primary dealer firm that has been at the centre of one of Sri Lanka's most high-profile financial scandals.

Suspension Remains in Force

The CBSL's decision to extend the suspension signals that regulatory authorities are not yet prepared to lift restrictions on the firm, which has faced intense scrutiny over its alleged role in the Treasury bond irregularities that rocked Sri Lanka's financial sector in recent years.

Perpetual Treasuries Limited, a licensed primary dealer authorised to participate in government securities markets, has been under suspension as the Central Bank continues its oversight of the matter in line with its mandate to ensure the integrity and stability of Sri Lanka's financial system.

Background to the Case

PTL became the focal point of widespread public and political controversy following investigations into alleged irregularities in the issuance of Treasury bonds. The scandal drew significant attention to governance standards within Sri Lanka's financial markets and prompted calls for greater transparency and accountability in the management of public debt instruments.

A Presidential Commission of Inquiry had previously examined the circumstances surrounding the bond transactions, with its findings casting a shadow over the operations of Perpetual Treasuries Limited and several individuals connected to the firm.

Regulatory Oversight Continues

The Central Bank's continued suspension of PTL's business activities underscores its commitment to enforcing regulatory compliance among primary dealers operating within the government securities market. Primary dealers play a critical role in the functioning of Sri Lanka's debt market, acting as direct counterparts to the government in the buying and selling of Treasury bonds and bills.

By extending the suspension, the CBSL is signalling that outstanding concerns regarding PTL's operations remain unresolved, and that the institution will not resume normal business activities until those matters are adequately addressed to the satisfaction of the regulator.

The Central Bank has not yet indicated a specific timeline for any further review or potential lifting of the suspension. Members of the public and market participants are advised to monitor official communications from the CBSL for further updates on this matter.

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