Sri Lanka finds more 'pump and dump' stock losses at National Savings Bank: Finance Minister

[SrirangaVeteran]

COLOMBO (EconomyNext) - The losses to Sri Lanka's National Savings Bank from being used to dump pumped up stocks during a bubble that broke in 2011 and 2012 was greater than previously imagined Finance Minister Ravi Karunanayake said.

Karunanayake said NSB had so far lost 1,071 billion rupees from stock in 10 companies bought for 2,645 million rupees, mainly in 2011 and 2012, he said.

The National Savings Bank hit the headlines during the last regime when it bought stock of The Finance Company, a troubled finance company.

"The same people who were involved in selling The Finance Company to NSB appeared to be involved in these deals as well," Karunanayake told reporters.

The stock included Browns, Renuka Holdings and Access, Karunanayake said.

In the case of one stock a 500 million rupee loss had made it.

NSB Chairman Ashwin de Silva would complain the anti-corruption commission on the matter, he said.

"You cannot win on every share, that is for sure, but why do you want to buy stocks that are sure to fall?" Karunayake asked.

During the stock market bubble, fired by low interest rates, which broke in 2011 and 2012, many shares were dumped on state-managed funds.

The Employees Provident Fund came to be known in markets as the 'buyer of last resort' as it bought stocks at prices other investors in the market were not buying.

[sereneTop contributor]

Thanks Sri for sharing.
1071Bn loss. You are kidding me.

[RPPATop contributor]

PAISSU HADENAWA. 1,070Bn

That much of loss. Can we find some more information.

As I have expected i don't think SEC will be able to punish market manipulators.But as above some SEXY deals from the previous regime can be found.

[LeonTop contributor]

I think this figure 1000b means 1 trillion. Surely another exaggerated finding from our Hon.RK.

[balapasTop contributor]

If 2,645 million worth of shares were bought maximum loss theoretically can be only 2,645 million. Figure mix up is something to do with the media reporting this.

Ravi K is the Pot calling others black. No action taken just talk about the past regime misdeeds.

[pathfinderTop contributor]

Ravi K is the Pot calling others black. No action taken just talk about the past regime misdeeds.

100 times agreed

[RPPATop contributor]

PAISSU HADENAWA. 1,070Bn

That much of loss. Can we find some more information.

As I have expected i don't think SEC will be able to punish market manipulators.But as above some SEXY deals from the previous regime can be found.

Karunanayake said NSB had so far lost 1,071 billion rupees from stock in 10 companies bought for 2,645 million rupees, mainly in 2011 and 2012, he said.

1,071Bn surely can't be right.There might be marked to market losses.But can't be that much. Ravi is out of his mind.

If the loss is that much surely the bank can't survive.

[First Guy]

Obviously it's a mistake. This is not the first instance new sites have made this error. If it was what the minister said, they should have clarified it before publishing or used common sense.

[Deegoda Gamage]

Why cant take actions against Person and firms concern

Now people think this type statement only a MEDIA SHOW