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RaviK, Aloysius and five others remanded over alleged Bonds Scam

FILE PHOTO – Former Finance Minister Ravi Karunanayake

ECONOMYNEXT – Former Finance Minister Ravi Karunanayake and seven others have been remanded by the Special High Court hearing the alleged Central Bank Bonds scam until Monday March 23.

Those remanded include Arjun Aloysius the former head of Perpetual Treasuries which has been accused of the scam as well as several officials in the Central Bank as well as the trader.

This morning when the case was called up, Karunanayake’s lawyers led by Faiz Mustapha asked the three-member Trial-at-Bar to release the accused on previously agreed bail conditions.

However Senior Deputy Solicitor General Haripriya Jayasundera appearing for the State objected to bail.

Then the three judges, Damith Thotawatte, Mohamed Irshedeen and Manjula Thilakaratne ordered the accused remanded until Monday.

The Attorney General (AG) Dappula de Livera filed indictments before two Special Courts hearing the cases filed pertaining to the alleged scam earlier today.

The spokeswoman for the AG State Counsel Nishara Jayaratne announced that the indictments were filed pertaining to the bond auctions conducted on 29 and 31 March 2016.

Perpetual Treasuries was involved in securities scams involving bidding at rigged bond auctions, where larger than announced volumes were sold when Arjuna Mahendran, the father of Perpetual Treasuries chief Aloysius was the governor of the Central Bank.

Deputy Governor Samarasiri was in charge of debt sales in 2015 and 2016 when the scams took place.

Perpetual Treasuries then dumped the bonds taken at low prices (high-interest rates) on the Employees Provident Fund, which was also managed by the Central Bank at high prices (low interest).

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The EPF itself had stayed out of key rigged auctions, the auditor general said. (Colombo, March 17, 2021)

Reported by Arjuna Ranawana

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