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Sri Lanka President orders probe into alleged bond market fraud

COLOMBO (EconomyNext) – Sri Lanka’s President Maithripala Sirisena will set up a three member committee to probe alleged irregularities on bond auctions by the Central Bank.

A statement from the President’s Media division said if the committee finds any wrongdoing, action will be taken against those responsible regardless of their status.

Sri Lanka’s bond markets were shaken last week after a 30-year bond was sold at high prices with about half the auction or 5.0 billion rupees being allocated to Perpetual Treasuries, a firm connected to Central Bank Governor Arjuna Mahendran’s son-in-law.

President Sirisena has also appointed a commission of headed by retired Supreme Court Justice Priyasath Dep into several financial frauds.
Supreme Court Judge Anil Gunaratne, High Court Judge Gihan Kulathunge, retired Auditor General Sarath Mayadunne and retired Additional Solicitor General Aiyathurei Gnanadasa will be part of the committee.

It will look into irregularities in land acquisition and frauds in the stock market and Employees Provident Fund.