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Sri Lanka President appoints members to commission on bond issue

Jan 27, 2017 (LBO) – Sri Lanka’s President Maithripala Sirisena today appointed a tri-member special presidential commission to inquire into the allegations of malpractices in the bond issues of the Central Bank. The commission comprises of Supreme Court judges Justice Kankanithanthri T. Chitrasiri, Justice Prasanna Sujeewa Jayawardena and retired Deputy Auditor General Vellupillai Kandasamy. The mandate of the commission will be to investigate the bond dealings and to recommend necessary actions within 3 months. The relevant gazette notification is yet to be published. The said bond was declared on the 27th February 2015 by Central Bank and carried accusations of insider trading which related to the bids of Perpetual Treasuries, a firm connected to Arjun Aloysius, the son-in-law of Governor Arjuna Mahendran, the then Governor of the bank.
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The Parliament this week debated the report produced by the Committee on Public Enterprises (COPE) which recommended legal action against the perpetrators. Speaking in Parliament, Deputy Foreign Minister Harsha de Silva said the Central Bank has already blocked Perpetual Treasuries from taking out the company profits for any purpose. “Central Bank has also requested instructions from the Attorney General on the possibility of filing a civil case to recover money if possible,” de Silva said. “Governor told me that he lodged a written complaint with the Police IGP over this and said that the Attorney General has already instructed the IGP to examine the issue as soon as possible.”
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