Central Bank buys NY property for US$5 mn

K.Haputantri · 1 Central Bank buys NY property for US$5 mn Tue Nov 27, 2012 11:26 am

K.Haputantri

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Central Bank buys NY property for US$5 mn
Daily Mirror

Purchased a building with a floor area of 12,000 square feet in New York on August 30 last year

The Central Bank transaction for the purchase of a property in New York has not been properly accounted for, Parliament was informed yesterday. The Central Bank is reported to have purchased a building with a floor area of 12,000 square feet in New York on August 30 last year at a total cost of US$ 5,075,000. Deputy Finance Minister Sarath Amunugama gave these details in response to a question by United National Party (UNP) MP Eran Wickramaratne. The deputy minister said the Central Bank Monetary Board had endorsed this transaction.“The property, which is now solely owned by the Monetary Board, was purchased with the intention of using it for future CB operations,” he said and added that the building had been rented out to our External Affairs Ministry at

US$ 68,000.In a supplementary question, Mr. Wickramaratne said that according to the Monetary Board Advisory Audit Committee Report this transaction had not been properly accounted for. The deputy minister said this was the first such investment made by the Central Bank, and therefore it had not been included in the Annual Report. He said such purchases would be reflected in future CB annual reports and added that there were no brokers involved in facilitating this purchase.

“It was done with the facilitation of the Government Chief Valuer and External Affairs Ministry officials,” the deputy minister said.

D.G.Dayaratne · 2 Re: Central Bank buys NY property for US$5 mn Tue Nov 27, 2012 1:42 pm

D.G.Dayaratne

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NOW Any one can understand the reason for impeachment of CJ It is warning to
others

It is very clear most of MPP and ministers support this govt to protect them selves from corruption charges.If they take some action they know wwhat will happen
" THE CEMENT OF GOVT BUILDING IS CORRUPTION"

If there is no corruption(Cement) the building will collapse

worthiness · 3 Re: Central Bank buys NY property for US$5 mn Tue Nov 27, 2012 5:50 pm

worthiness

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Most of senior & junior parliamentarians are under the shade of corrupted umbrella. They act as ghostly characters by raising the hands approving any kind of legislation which pacify the ruling party.

No one raises voice fearing that their secret deals would be taken up hidden under the carpet. As long as they are protected, their kith & kin enjoy the lives at the expense of public funds.

We are far away from democracy & rights to have first hand information. Is CB bound or privileged not to publish certain activities, transactions or deals undertaken in its annual report?

UKboy · 4 Re: Central Bank buys NY property for US$5 mn Tue Nov 27, 2012 9:39 pm

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This could be a wise investment depends on the area. However the statement does not clearly mention the area.
It could be New York city, New York metropolitan area or New York state. Rolling Eyes

Price of 1sqft varies from area to area.

Jiggysaurus · 5 Re: Central Bank buys NY property for US$5 mn Wed Nov 28, 2012 10:33 am

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UKboy wrote:
It could be New York city, New York metropolitan area or New York state.
Price of 1sqft varies from area to area.

If the idiots involved in the hedging deal did this it will probably be in Staten Island (near a flood risk area).
The lack of transparancy is the main issue (the only reason this was disclosed was because questions were asked in parliament otherwise this might have stayed hidden for years). The biggest risk is that this might end up being a holiday home for our politikkas.
Imagine the next time one of our fosilised cabinet members get a stroke, they travel by Mihin Air to New York, stay at this condo and go for spa treatments (all on SL tax payers cost).
Investing in foreign assets is a good idea (who knows some day CB can sell this for a nic capital gain), but there should be at least a little bit of transparancy in these deals.

D.G.Dayaratne · 6 Re: Central Bank buys NY property for US$5 mn Wed Nov 28, 2012 11:40 am

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This might have been good investment if this was done when the pries of
real assets ware very low
It appears that no transparency in this trans action and Why this was not
disclosed in time ?

K.Haputantri · 7 Re: Central Bank buys NY property for US$5 mn Thu Nov 29, 2012 4:08 pm

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Central Bank clarifies on New York property purchase

November 29, 2012 01:17 pm
Ada Derana

Central Bank confirmed that its property acquisition in New York has been reported in accordance with applicable accounting standards.

Responding to a statement made by the main opposition United National Party MP Eran Wickramaratne in parliament on Monday about omitting the purchase in the Bank’s annual report, the Central Bank said the property was acquired according to the prevailing International and Sri Lanka Accounting Standards.

The Central Bank also said that the property has been acquired in accordance with the established legal framework and procurement procedures.

When the opposition raised the issue in parliament, the Deputy Finance Minister Dr. Sarath Amunugama, explaining on the matter said the purchase had been made on August 30, 2011 in accordance with the approval from the Monetary Board of the Central Bank in keeping with the advice of the Attorney General, the Cabinet of Ministers too, has been apprised of the acquisition.

Dr. Amunugama said that the Bank had bought the entire second floor of a multi-storied Diplomat Centre Condominium building spending US$ 5 million and added that the space has now been rented out for a monthly rental for Rs. 68,000 to the External Affairs Ministry, Govt. Information Department reports.

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