Bribery Commission prohibits Sri Lanka’s Central Bank Governor Arjuna Mahendran from going overseas
Posted on April 18th, 2015

Adaderana

The Commission to Investigate Allegations on Bribery or Corruption has reportedly prohibited Sri Lanka’s Central Bank Governor Arjuna Mahendran from travelling overseas.

Mahendran was summoned and questioned by the Commission yesterday (16 April) for over six hours from 9.00 am over allegations of irregularities in the recent Treasury Bond issue and his statement recorded, said his lawyers.

Arjuna Mahendran who holds citizenship in Singapore as well has been the Managing Director of HSBC in the Asian region. He was appointed as the governor of the Central Bank of Sri Lanka by the new government under claims that he is an experienced banker.

However, in February 24, 2015 the Central Bank announced the issue of Treasury Bonds for Rs. 01 billion with a maturity period of 30 years on an interest rate between 09 to 9.5 per cent. Sixteen bids were placed by primary dealers due to the validity of government issued Treasury Bonds.

But, the Treasury Bond was increased from Rs. 01 billion to Rs. 10 billion on claims of funding government expenditure.

Perpetual Treasuries (Pvt) Ltd., which is said to belong to Arjuna Mahendran’s son-in-law outbid the others and claimed the highest bid. Thus, dissatisfaction arose among the primary dealers over the change in value of the Treasury Bond and the increase of the interest rate from the earlier 9.5% to 12.5%.

The Janatha Vimukthi Peramuna (JVP) which is a staunch supporter of the incumbent Good Governance regime too lodged a complaint with the Commission to Investigate Allegations on Bribery or Corruption claiming that the Treasury Bond issue continues to cause millions of rupees in losses to the government.

One Response to “Bribery Commission prohibits Sri Lanka’s Central Bank Governor Arjuna Mahendran from going overseas”

  1. Christie Says:

    Namaste: How come Bribery Commission looking at financial fraud? Who ever is responsible for such actions should look in to this with the help of Police. The current government should look at the laws and processes used by US or other Western countries. Jai Hind

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