Perpetual Treasuries profits slump after suspension

Perpetual Treasuries Ltd (PTL), accused of insider trading in controversial bond trades in February 2015 and since July 2017 and suspended from business, saw its profits slide to Rs. 316 million in the six-month period ending September 2017 against a phenomenal Rs. 6.8 billion in the same 2016 months.

In unaudited 6-month accounts published yesterday, as statutorily required by the Central Bank, PTL reported net capital gain (from trading financial assets) at a mere Rs. 6.8 million compared to Rs. 5.6 billion in the six-months ending September 2016. However its retained earnings as at September 2017 was more than Rs. 10 billion.

The controversial money market trader was suspended from business activities on July 6 by the CB. This means that Saturday’s balance sheet announcement reflects profit or loss only for the period of April to July 6. The company linked to the son-in-law of former CB Governor Arjuna Mahendran was, last month, accused of spending millions of rupees to pay off dealers at the EPF. This was disclosed during evidence led at the ongoing Bond Commission hearings.

Meanwhile, the company’s website link has been pulled down. A notice on the website (perpetual.lk) of its holding company (Perpetual Group) said PTL’s website is unavailable.