This statement is with reference to the media briefing and social media posts being made against SLIC’s investment in treasury bond auction on 9th April 2026.
On 6th April 2026, Public Debt Management Office (PDMO) of Ministry of Finance, Planning and Economic Development made a public announcement of a treasury bond auction held on 9 April 2026.
The due approval was obtainedfrom SLIC and SLIC Life Investment Committees to participate in the said auction before the auction date. Therefore, SLIC and SLIC Life categorically deny the allegation of making this investment without the official approval. Further, both SLIC and SLIC Life invested only Rs.6 billion, not Rs.10 billion as alleged during the media briefing and social media posts. Only Rs.2 billion was invested in the particular bond maturing on 1 July 2030. Further, Rs.3 billion was invested in the bond maturing on 15 June 2034, and Rs.1 billion was invested in treasury bond maturing on 1 July 2037. And auction bidding rates were decided having carefully analysed the prevailing market ratesin the secondary market before the auction date for the respective tenures, and SLIC and SLIC Life bided at rateshigherthan the said market rates with the intention of full subscription.Accordingly, SLIC and SLIC Life reject any suggestion of impropriety or premeditated financial misconduct.
The auction participation was facilitated by five primary dealer institutions appointed by the Central Bank of Sri Lanka, namely, Commercial Bank of Ceylon PLC, HNB Securities Ltd, First Capital Treasuries PLC, Capital Alliance PLC, and WealthTrust Securities PLC, without any transactional fee as a market norm. Therefore, this is a direct investment made with the government via the government bond auction.As large institutional investors, SLIC and SLIC Life wereregular participantsas before in the treasury bond auctions through the primary dealer institutions.
As alleged in the said media briefing and the social media posts, neither SLIC nor SLIC Life has invested at the rate of 9.75%. The rate of 9.75% is the coupon rate of the bond maturing 1 July 2030, and we have invested in the same bond at yield rates higher than 9.75%. Accounting treatment of the said bonds will be based on Sri Lanka Financial Reporting Standard 9 (SLFRS 9), and therefore SLIC and SLIC Life categorically deny false, misleading, and malicious allegation of Rs.500Mn loss already being made.
Both SLIC and SLIC Life are committed to safeguard its funds under management and ensure that necessary due diligence and internal approval process are being followed.SLIC reiterates that the claims circulated in relation to this investment are entirely false, misleading, and malicious, and vehemently denies, rejects, and condemns such statements in their entirety. These false claims have the potential to adversely affect confidence in the financial market, and therefore due legal action will be taken against the perpetrators responsible for disseminating such claims and statements.
Source : Daily News
