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The Committee on Public Enterprises (COPE) has called on the Auditor General to submit a report regarding all dealings done by the Central Bank of Sri Lanka (CBSL) since January this year.

The move comes amidst fresh allegations pertaining to the issuance of Treasury bond worth Rs. 80 billion in March, whereas the CBSL had claimed the bonds issue was only for Rs. 40 billion.

When queried about the allegation with regard to a scam surrounding a Treasury bond issue of Rs 80 billion reported to have taken place on March 29, Chairman of the COPE and MP, Sunil Handunneththi said that it was said to have taken place subsequent to the last time that Governor of the CBSL, Arjuna Mahendran had been summoned before the COPE for questioning.

Auditor General, H.M. Gamini Wijesinghe was not available for a comment.

Meanwhile, both Deputy Minister of Megapolis and Western Development and Chairman of the Committee on Public Accounts, Lasantha Alagiyawanna and Handunneththi said that nothing in relation to the recent Panama Papers leak concerning offshore dealings including those of Sri Lankans had come to their notice yet. Elsewhere, civil society actor, the non-governmental organization, the Anti-Corruption Front (ACF) had written to Mahendran seeking an explanation regarding the bonds issue and had expressed that the manner in which the doubling of the issuing of bonds, which the CBSL had claimed as being for reasons that the demand for Treasury bonds had experienced an increase, was extremely suspicious.

The ACF also expressed concern over the non-disclosure of details pertaining to the primary dealers who had purchased the said bonds.

  • Dalit

    The relationships and associations between the Chief and the lenders and their actions clearly show the lenders have gained a financial advantage over others at the expense of the country. This type of financial fraud in the West leads to jail as happened to Rajaratnam of the US who are childhood friends of Mahendrans.

  • Lanka Watch

    Bickering of Governor, CBSL has gone far too long and here is an opportunity for the
    COPE to either clear his name or charge him. and let him either do his work peace
    -fully or let him leave the institution. G/CB’s job is to find money to pay for the expen
    -diture of the state and he may find various means to borrow money, through local or foreign sources as we are not on top of the economy to have large reserves, to pay
    off the debts instantly and the methods applied to achieve it should not be construed as ‘robbery’ of CB by ordinary layman who does not understand as to how a CB works.
    Gs/CB in all countries are directly answerable to either the Finance minister or the PM and he or she who is the Governor is allowed to work independently in other countries without bickering by every Dick, Tom & Harry.as happens in Sri Lanka. G/CB is not a politician to answer questions put forward by politicians now and then and PM under whom the G/CB performs, should be answerable to the media and the opposition and he should allocate prime time on govt. TVs for the Governor to brief the people on what is going on in CB and financial state of the country on a weekly or monthly basis.
    He has fared very well in monetary meetings with IMF and other financial institutions
    abroad and he is now a respected Governor in the region, after facing few problems
    when started work in CBSL. A man’s ability should not be judged by his ethnicity. but by his past experience and he has it working for a large financial institution in Singapore, the financial centre for Asia. and he is an ex employee of CBSL. as well.