GL, Mahendran trade fire over bond scam -‘PM making suggestions to officials, including Governor, CB appropriate’
Posted on June 29th, 2015

By Shamindra Ferdinando  Courtesy Island

The Opposition yesterday alleged that the Governor of the Central Bank Arjuna Mahendran had received instructions from Prime Minister Ranil Wickremesinghe as regards change of established procedures in the run-up to the controversial bond issue and such interventions were contrary to existing regulations.

Prof. Peiris told The Island that CB Governor himself had admitted premier Wickremesinghe’s intervention when he appeared before the special parliamentary committee tasked to investigate the controversial bond issue. The former External Affairs Minister alleged that significant changes had been made in the established procedures in contravention of monetary regulations. He said that the Governor couldn’t have received instructions or advise as regards the bond issue, though the PM as the line minister in charge of CB had the authority to give directives pertaining to specific matters.

Prof. Peiris said PM Wickremesinghe had pushed for the dissolution of parliament to thwart release of parliamentary investigation report.

Admitting that he had received suggestions from Premier Wickremesinghe, CB Governor Mahendran said: “The. Prime Minister is the Minister in charge of the Ministry of Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs, which is the line Ministry in charge of the Central Bank of Sri Lanka (CBSL). The Prime Minister made this comment at the regular weekly meeting of the Cabinet Subcommittee on Economic Affairs as it is an issue of vital economic importance in Sri Lanka. The Governor of the CBSL is a regular invitee to meetings on economic affairs where issues of vital national importance relating to the economy are discussed. There is nothing therefore inappropriate for the Prime Minister to make suggestions to various officials including the Governor of the CBSL.”

Mahendran alleged that Prof. Peiris had conveniently excluded the context in which those remarks were made. He also had very conveniently forgotten to mention that the depositors in the EPF and NSB were forced to receive artificially low rates of interest as a consequence of misguided policy of the previous government to use EPF and NSB funds to artificially reduce interest rates which was not acceptable to the market.” The CB Governor said that Prime Minister’s comments should be examined against the backdrop of misguided policies of the previous administration.

4 Responses to “GL, Mahendran trade fire over bond scam -‘PM making suggestions to officials, including Governor, CB appropriate’”

  1. LANKAPUTHRA Says:

    Who Instructed RANIL PUNK? Answer OBAMA, Under the instructions from TAMILS FOR OBAMA INTERANTINAL INC., Professor Peiris is living in a dream world

  2. Christie Says:

    Mahendran& Mahendran are Indian Colonial Parasites and Ranil is juat another puppet the Kankaani appointed by the Indian Empire.

  3. Kumari Says:

    Central Bank was always under Ministry of Finance and some Presidents or Prime Minister’s took the whole ministry under them. Why did RW appoint a Ravi (foreign exchange rogue ) as Finance Minister but kept CB (to his nephew) under him. Are we smelling something more?

  4. Susantha Wijesinghe Says:

    SRI LANKA IS BLESSED BY THE GUARDIAN DIETIES, THAT ROCKED THE BOAT FOR RANIL. MAHINDAS NEW GOVERNMENT MUST INQUIRE INTO THE CENTRAL BANK SCAM, AND ENSURE COMPLETE EXPOSURE TO INSIDER TRADING. PUNISH ALL THROUGH THE COURTS.

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