Bond scam: AG to file indictments against Mahendran, Aloysius
Posted on June 7th, 2019

Shehan Chamika Silva Courtesy The Daily Mirror

The indictments against ten suspects including Central Bank’s former governor Arjuna Mahendran, Perpetual Treasuries Ltd., owner Arjun Aloysius and its CEO Kasun Palisena have been prepared and will be filed in the High Court by the Attorney General in connection with Treasury bond scam.

The Attorney General’s Co-ordinating Officer, State Counsel Nishara Jayaratne said that having considered the nature and the gravity of the case, the AG had requested the Chief Justice to direct the institution of Criminal Proceedings in the Colombo High Court before a trial-at-bar comprising three judges.

No sooner the directive is received from the Chief Justice, the AG will file the indictments on 23 counts against the ten suspects under sections of the Penal Code, the Public Property Act and the Registered Stocks and Securities Ordinance.

The suspects to be indicted are — Lakshman Arjun Mahendran, CBSL’s former deputy governor Paththinige Samarasiri, the Perpetual Treasuries Ltd, Arjun Joseph Aloysius, Kasun Oshadhee Palisena, PTL directors Jeffery Joseph Aloysius, Pushya Mithra Gunawardane, Chitta Ranjan Hulugalla, Muthuraja Surendran and Ajahn Gardiya Punchchihewa.

The suspects will be indicted in connection with the charges arising out of the Treasury Bond auction held on February 27, 2015 (in respect of the face value of Rs.10.058 billion) causing a Rs.688 million loss to the government.

Following are the charges:

1. Conspiracy to commit criminal misappropriation in respect of Treasury Bonds to the face value of Rs.10.058 billion.

2. Criminal breach of trust against the 1st and 2nd suspects and causing a loss to the Government of Rs.688,762,100.

3. Aiding and Abetting the 1st suspect to commit criminal breach of trust.

4. Criminal misappropriation in respect of Treasury Bonds to the face value of Rs.5 billion against the 3rd suspect.

5. Aiding and Abetting the 3rd suspect to commit criminal misappropriation.

6. Committing insider dealing by 3rd suspect.

7. Aiding and abetting the 3rd suspect to commit insider dealing against all the other suspects.

The above charges have been formulated considering all the evidence presented during the Bond Commission Inquiry conducted by the Commission of Inquiry appointed by the President and also considering the material disclosed during the investigation conducted by the CID.

According to the Auditor General, the estimated avoidable loss suffered by the government at this auction alone (on February 27, 2015) was approximately Rs. 688,762,100.

According to Co-coordinating Officer to the Attorney General, State Counsel Nishara Jayaratne, it has been a painstaking approach by the prosecutors to study thousands of pages of evidence and thereafter consider and present charges against the accused which has been so far the largest organized financial crime perpetrated in this country by any person or person which had an impact on the Financial Markets and the country’s economy.

More indictments are expected to be presented on the basis of the evidence revealed at the Bond Commission Inquiry and investigations conducted by the CID. (

One Response to “Bond scam: AG to file indictments against Mahendran, Aloysius”

  1. jay-ran Says:

    What about RANIL WICKREMASINGHE WHO TOO WAS DIRECTLY INVOLVED IN THIS ROBERY BY GETTING DOWN THE SINGAPORIAN LIVING ARJUNA MAHENDRAN AND MAKING HIM THE GOVERNOR OF CENTRAL BANK TO ROB THE MONEY AND GOT A BIG SHARE OF THAT GOVERNMENT FUNDS???? Then R W allowed A Mahendran to leave Sri Lanka?????

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