Legal action against Sri Lanka ex-CB Governor; action to recover losses: COPE
ECONOMYNEXT – A parliamentary committee has recommended legal action against former Central Bank Governor Arjuna Mahendran and officials involved in controversial bond deals and the recovery of losses to the government.
Sunil Handunetti, Chairman of the Committee on Public Enterprises (COPE) of Sri Lanka’s Parliament said evidence brought before the committee raised reasonable doubt that ex-Governor Mahendran had interfered in a bond auction and the confidence in the central bank had been undermined.
He said Perpetual Treasuries, a firm connected to his son-in-law and made enormous profits from the deals.
The committee recommended that action should be taken to examine and recover any losses to the state and central bank.
The Central Bank should also conduct its own probe and come up with procedures to make auctions transparent.
The committee also recommended post-evaluations of auctions.