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Sri Lanka Central Bank suspends primary dealer Pan Asia Banking Corporation

Sri Lanka Central Bank suspends primary dealer Pan Asia Banking Corporation

COLOMBO: The Monetary Board of Sri Lanka’s Central Bank has decided to suspend the business activities of a Primary Dealer of Pan Asia Banking Corporation PLC (PABC) from today for a period of six months. The Central Bank in a statement released said the PABC will be suspended with effect from 10.00 a.m. on 15th August 2017. This regulatory action is based on the findings of an investigation carried out by the Central Bank related to PABC’s transactions with Perpetual Treasuries Ltd in the government securities market. “The Central Bank of Sri Lanka also wishes to inform the general public that the above regulatory action does not in any way affect PABC’s ability to carry on banking activities set out in Schedule II of the Banking Act, No. 30 of 1988 as a Licensed Commercial Bank,” the statement said.

Accordingly, PABC may continue to deal in government securities to the extent permitted under schedule II of the Banking Act. Action will also be taken by the Central Bank to safeguard the interests of the customers and counterparties of PABC in the government securities market, in an orderly manner. The Central Bank emphasized that this regulatory action restricts PABC’s access to the primary auctions for government securities. It does not affect any of the other activities/services of PABC. The Monetary Board on 14th August 2017 has taken the decision to suspend PAB, acting in terms of the Regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance.