Treasury bond issue jolts yahapalanaya

The infamous Treasury bond issue which is now under an inquiry has dealt a severe blow to the government's yahapalanaya approach, business leaders say.

The committee to inquire into the bond issue will submit its report shortly and the findings will reveal what went wrong in that transaction. The Central Bank in a communiqué said that Governor Arjuna Mahendran will be on "leave in Sri Lanka" during the period of the inquiry into the 30-year Treasury Bond issuance. Accordingly, the Monetary Board has designated Deputy Governor P. Samarasiri as the Senior Deputy Governor.

The new government's promise of good governance, transparency and policy consistency has been called into question by the bond issue, say business leaders in a report in today's Business and Finance section. It also sends warning signals to the new appointees of this administration to ensure credibility and be prudent and ethical in discharging their duties.