The Chief Executive Officer of Perpetual Treasuries Limited, Kasun Palisena testified before the Presidential Commission of Inquiry for the first time today.
Kasun Palisena, the CEO of Perpetual Treasuries had served at First Capital Money Brokers Limited, Bartleet Mecklai & Roy, Acuity Securities Limited, before joining Perpetual Treasuries Limited as a Dealer, and thereafter became the CEO of Perpetual Treasuries Limited.
When he joined Perpetual Treasuries Limited, the Board of Directors of Perpetual comprised Chairman Geoffrey Aloysius, Arjun Aloysius, Suren Muthurajah, Godfrey Aloysius and Ranjan Hulugalle.
One of the conditions mentioned in the business plan submitted to the Central Bank by Perpetual Treasuries was that it will promote different techniques it learnt in equity secondary market transactions for secondary bond market.
Palisena said the buying and selling of shares for the Perpetual Group was done by Perpetual Asset Management and Perpetual Capital Holdings involving Arjun Aloysius and Suren Muthurajah.
Justice Prasanna Jayawardena, citing there were allegations at the Colombo Stock Exchange in 2012, was concerned if those techniques were to be adopted – Palisena said Perpetual Treasuries Limited had submitted the business plan before his time.
The starting capital of Perpetual Treasuries Limited was Rs. 310.3 million which was pumped by Perpetual Asset Management.
Perpetual Treasuries Limited generated a profit of Rs. 816.6 million from the 1st of April 2014 to 30th September 2014, which increased their capital to Rs. 1.1 billion during that period – an increase of 400% of their initial capital.
From 28th March 2014 to 26th of February 2015, the total secondary market transactions by Perpetual Treasuries Limited were Rs. 276 billion 34 million of the face value of bonds which mature at seven years or more becoming a Price Maker.
According to Palisena, the non-bank price makers are WealthTrust Securities Limited, First Capital Securities Ltd, Perpetual Treasuries Limited and Capital Alliance.