The Central Bank of Sri Lankan (CBSL) has suspended the primary dealer arm of Pan Asia Banking Corporation (PABC) for six months from August 15 following revelations of transactions with Perpetual Treasuries Ltd.

“This regulatory action is based on the findings of an investigation carried out by the Central Bank related to PABC’s transactions with Perpetual Treasuries Ltd in the government securities market,” the Central Bank said in a statement.

It added that the regulatory action ‘does not in any way’ affect the PABC’s ability to carry on banking activities – ‘PABC may continue to deal in government securities to the extent permitted under Schedule II of the Banking Act,’ the CBSL said.

It added that action would also be taken by the Central Bank to ‘safeguard the interests of the customers and counterparties of PABC in the government securities market’, in an orderly manner.