At the onset of the today’s proceedings, Deputy Solicitor General Milinda Gunatilleka played a new Voice recording, in which PTL CEO Kasun Palisena and Arjun Aloysius were part of.
In this conversation, Kasun Palisena initially refers to some ‘Little Johney’ and in the latter part they were discussing about getting the yield rate down of a particular bond maturity (2026). In this conversation, Palisena talks about an individual called ‘New Charley’.
When Palisena refers to ‘New Charley’, Aloysius does not seem to remember about that individual and at that moment Palisena says ‘no no, this is Little Johnny’s Narahenpita guy’.
After this conversation was played, DSG Gunatilleke and the Commission repeatedly questioned Palisena as to who was he referring to.
This conversation took place on February 1, 2016
DSG Gunatilleke: Who is this ‘New Charley’?
Witness Palisena: Can be someone from that point
DSG: It clearly says ‘Narahenpita’. So don’t waste the time. Tell who is this person?
Witness: This was some time back. So cannot recall exactly who that was.
DSG: It was very clear that you and Aloysius are talking about the 2026 bond and about some individuals. Your answer is deceitful. It is self evident from this conversation that Aloysius was aware about this Little Johnny and the others. So I’m asking one final time, who is this Little Johnny? Was it Kaveen Karunamurti (DFCC dealer) or Saman Kumara (EPF Dealer)?
W: I don’t know.
DSG: In this conversation you refer as ‘this is Little Johnny’s Narahenpita guy’.
DSG: The ETF is there in the Narhenpita, right?
DSG: Tell the truth at least now, and disclose the names of these people.
W: it could be anyone
DSG: I told you earlier that there is a limit to lying
At this point Justice Prasanna Jayawardena questioned the witness about the conversation. It was revealed that Aloysius was keeping an eye on the PTL’s activities regularly.
Justice Jayawardena: It is clear now that you and Aloysius were talking in that conversation to influence on the yield rate to manipulate the market, right?
J: And you used Little Johnny to push the rate, and is this a common occurrence?
Witness’ answer was negative
When Justice Jayawardena questioned as to why they used to talk with nick names. The witness said that they do not want it to be known by other counter parties.
Justice Jayawardena again asked the witness to reveal the names but the witness maintained his stance that he does not know.
Justice Jayawardena: In a previous conversation that you had with Aloysius on March 29, 2016, you said “I got Little Johnny’s bids”?
W: That was about client’s bids which I was referring to.
Justice Jayawardena: Either way, it is clear now that you and Aloysius had colluded to bring down rates using Little Johnny and New Charley?
W: Yes. But we were only talking about it.
Meanwhile, when President’s Counsel Anuja Premaratne who was appearing on behalf of Arjun Aloysius was re-examining the witness, Justice Jayawardena said not to question about the matters relating to Aloysius other than the phone conversations because his client was given all the opportunity come before the Commission to present his case.