Monday January 21, 2019

Sri Lanka President says suggested Central Bank Governor resign after bond scam

Jul 15, 2015 06:19 AM GMT+0530 | 16 Comment(s)

ECONOMYNEXT - Sri Lanka's President Maithripala Sirisena said he had suggested that Central Bank Governor Arjuna Mahendran resign following 10 billion rupee bond scam that rocked the new administration.

In a February bond auction, 5 billion rupees in 30-year bonds were sold at sharply higher interest rates to a company connected to Central Bank Governor Mahendran's son-in-law after asking a tender committee to accept bids from the firm which it had already rejected.

"I have a personal opinion and there is an opinion among the people in the country that (Prime Minister) Ranil Wickremesinghe is not a corrupt person, a thief," President Sirisena told reporters Tuesday explaining current political developments.

"In this background… I said the best thing was for the Central Bank Governor to resign."

The bond deal had become the biggest scandal to shatter the claim to 'good governance' which the administration was expected to deliver to voters.

Wickremesinghe's defence of the deal and pointing of fingers of elsewhere has also came a shock to some voters.

President Sirisena appointed the Governor amid concerns over conflicts of interest with Mahendran's son-in-law's Perpetual group which has come under fire over sales of stock to the Employees Provident Fund, under the previous administration.

The previous Central Bank Governor's sister had also been a director of the primary dealer arm.(Colombo/July15/2015)



Related Stories


  1. Ajantha August 24, 06:28 AM

    Dear Sri Lankans,just think for a moment why the hell we need to appoint a foreigner as the governor of the contry's highest financial institiute while there are a lot of educated Sri Lankans are available for teh vacancy Is this what we expect form the good governrs This is a clear indcation of how feeble the president who can't stand on his own feet. Aren't we beibg cheated by every one Shame on all of us for trusting these politicians.

  2. Sultan July 22, 11:16 AM

    Shameful comments by all. What loss are we talking about. Know the facts before commenting . All you seem to be bond experts after picking dots from media. Take a hike

  3. UDS July 15, 04:03 AM

    How on earth can one expect Sirisena to force Mahendran to resign when he admitted desolving the parliament to protect Ranil who seem to be the architect of this scam. RW who succeeded in beating the value of all alleged scams of MR should be investigated by his gestapo FCID and at least remanded without grating bail.

  4. Concerned-Citizen July 15, 04:08 AM

    The previous Governor's wife though a director of the firm, during that time this firm had bought bonds apparently only once, and that too just a few millions. The current bond issue is of totally different dimensions and it worked in a manner as if there was a network to commit this scam and then defend the scam with bogus reasons.

  5. tibs July 15, 02:55 AM

    Lame duck President, any one wonder why Rajapaksa gave him the middle finger when ask not to contest guy cant even sack RW's pal Mahendran. Only country to appoint two crooks back to back for the important post of governor of the central bank.

  6. sue July 15, 02:01 AM

    The president let the people of Sri Lanka down by choosing a megalomaniac called Ranil to be the PM. It should be the people's choice in electing a PM. The country has gone downhill. MR was accused of taking preposterous amount of money but nothing was proved. MR brought the country forward. The present party of goons spent their time telling absurd tales of corruption. Bring back MR.

  7. carlos July 15, 12:38 PM

    Why isnt the son in law banned or suspended from trading till this is cleared up?

  8. MetteyyaBrahmana July 15, 12:23 PM

    I echo most of the comments here but I am a lot more critical of Ranil and the UNP for the obvious cover up of this fraud with a so called 'independent' committee of UNP loyalists who found no 'direct' involvement by the governor. This is in sharp contrast to interviews by Central Bank staff that said the governor came into the bond trading room twice, reviewed the bidding list, and then directed them over their objections to accept bids to the exact amount of his nephew's bid.

  9. NAK July 15, 11:53 AM

    This President has never shown he is a man of his word. He is as he was called before his election a 'patholaya'who can't make straight forward decision.It was he who should have asked the govener to resign not suggest.

  10. Hiran Thilkaratne July 15, 10:32 AM

    President also refrain to audience that he dissolved the parliament to prevent Ranil getting defeated in no confidence vote.This is against the principle he mentioned not to get involve in parliament matters Also it indicates that there is a matter for concern and he tried to cover up a fraud He should no longer hold the SLFP Leadership since he no longer supports his party win in the election.What mess this man is inshamed to call him as our president

  11. Joseph July 15, 09:58 AM

    Mr president you are leading a pack of white collar gentlemanly rogues who are pretending to be honest. And you are allowing them to escape.

  12. Nimal July 15, 09:31 AM

    Considering the media statement by the president yesterday as head of the SLFPPA the general membership and the ex co will have to take a decision on it's leadership as the leader is not taking an active party towards it's victory. This will effect all candidates and not only MR in K'gala. Very disappointing. MS must resign from the SLFP if this is his stand.

  13. Wilward July 15, 09:36 AM

    Dear Ranil You have a one time golden opportunity in front of you. Ask the Governor to get out without corrupting your political messages. If you do not do or if Arjuna does not resign, you will pay the life time prize with all your brats. We are so desperately with your deep silence on this fraud.

  14. Piyal July 15, 09:27 AM

    President is correct of in suggesting the resignation of the CB Governor. Whether Mahendran is directly connected or not he would have accepted responsibility as the head of the Institution and resigned. By hanging on he is exposing Ranil to a bigger danger as it will be not easy to sweep scandals under the carpet like in the past. Even if UNP led coalition come back to power President will be responsible to masses who demand transparency and Good Governance. Piyal

  15. Jayasingha July 15, 09:22 AM

    If the president is serious on good governance he should compel PM to remove CB governor. Saving the Govt and RW on this issue by dissolving parliament does not look good if he is talking so big about good governance. He himself believes there has been fraud at the CB.

  16. Nic July 15, 08:06 AM

    Mr President do you not have the constitutional power to remove the Governor from office. It is very clear good governance means the absence of even the slightest possible impropriety.

Name *
Email *
Telephone Number