මහ බැංකුවේ තිස් අවුරුදු බැඳුම්කර ඛේදවාචකය: ‘අහිමි වූයේ‘ කුමක් ද? = Central Bank’s 30 year Bond Debacle: What is the “Loss”?

Abstract

In February 2015 the Central Bank of Sri Lanka called an auction for one billion rupees on a 30 year bond. It then accepted 10 fold – 10 billion rupees – after the bids were in. This Insight identifies three errors in the published calculation of the monetary loss, and recalculates it at 0.9 billion rupees. It also highlights two other issues: conflict of interest, and confidence in institutions, which add to the negative consequences of the Central Bank decision.