Questionable governance when loss-incurred CB has made a profit transfer to Government

March 2, 2015

Massive losses incurred by Central Bank in 2013
A very vital piece of information relating to the Central Bank which has been missed by many has been the incurrence of a massive loss amounting to Rs. 24 billion in its ordinary operations during 2013. This loss has further been increased to Rs. 39 billion when its comprehensive operations are also taken into account.
These figures, arrived at by preparing the accounts of the Bank in terms of International Financial Reporting Standards or IFRSs, are slightly at variance with the requirements for calculating profits as laid down in the Monetary Law Act enacted as far back as 1949. Yet, for assessing the solvency and the performance of the Bank, the losses calculated in terms of IFRS are relevant.

Questionable Governance When Loss-Incurred CB Has Made a Profit Transfer to Government by Thavam Ratna