Sri Lanka bondscam suspects remanded

ECONOMYNEXT – Suspects in Sri Lanka’s largest securities scam who were arrested Monday were remanded till April 05 by a magistrate.

Sri Lanka’s police arrested Retired Deputy Governor Pathinige Samarasiri, and directors of Perpetual Treasuries Chithra Ranjan Hulugalle, P Gunewardene, Muthuraja Surendranwere, and Chairman Geoffrey Aloysius was arrested by the criminal investigation department.

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 Arjun 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).

The EPF itself had stayed out of key rigged auctions, the auditor general said. (Colombo/Mar26/2019-SB)