Prime Minister Dr. Harini Amarasuriya informed Parliament of the current status of legal proceedings connected to the 2015 and 2016 Central Bank bond scam—widely regarded as one of Sri Lanka’s most significant financial controversies.
Following recommendations from the Presidential Commission of Inquiry and subsequent CID investigations, the Attorney General has filed indictments against Perpetual Treasuries Limited and several high-profile individuals, including:
- Sandesh Ravindra Karunanayake – Former Minister of Finance
- Lakshman Arjuna Mahendran – Former Governor, Central Bank of Sri Lanka
- Paththinige Samarasiri – Former Deputy Governor, Central Bank of Sri Lanka
- Arjun Joseph Aloysius
- Palisena Appuhamilage Don Kasun Oshadi Palisena
- Jeffrey Joseph Aloysius
- Chittharanjan Hulugalla
- Muthu Raja Surendran
- Ajahn Gardiye Punchihewa
- Badugoda Heva Indika Saman Kumara – Chief Dealer, Employees’ Provident Fund
- Sangarapillai Padmanapan – Senior Manager, Public Debt Department
Although the Central Bank has yet to quantify the full economic impact, legal efforts are underway to recover Rs. 78.16 million from Central Bank funds and Rs. 6.98 billion from the Employees’ Provident Fund, with these cases now before the Colombo District Court.
Additionally, indictments relating to the bond issuances of February 27, 2015, March 29, 2016, and March 31, 2016 are before the Three-Judge High Court. Progress, however, has been slowed by appeals and writ applications. The Court of Appeal previously dismissed challenges to the High Court’s decisions regarding the release of accused under the Public Property Act, and the Supreme Court has now granted leave to proceed in cases SCSPL/LA/135/22 and SCAPP/161/23, allowing trials to continue.
Writ applications filed by Sandesh Ravindra Karunanayake contesting his inclusion as an accused were initially upheld by the Court of Appeal, but the Supreme Court has since overturned those rulings, permitting the High Court to move forward.
Beyond criminal cases, multiple institutions have also filed civil recovery actions against Perpetual Treasuries Limited, including:
- Sri Lanka Insurance Corporation
- University Grants Commission
- Mahapola Higher Education Scholarship Trust Fund
- National Savings Bank
- Employees’ Trust Fund Board
The Central Bank bond scam is widely known as one of the country’s most impactful financial scandals, involving irregularities in government bond issuances during 2015 and 2016.
Nature of the Scam:
The allegations revolve around Perpetual Treasuries Limited, which was accused of receiving insider information and undue advantage during treasury bond auctions. These auctions included unusually large issuances, triggering concerns over corruption and conflicts of interest.
Key Individuals:
- Arjuna Mahendran – then Governor of the Central Bank
- Arjun Aloysius – Owner of Perpetual Treasuries Limited
- Kasun Palisena – CEO of PTL
- Senior Central Bank and institutional officials
- Sandesh Ravindra Karunanayake – Former Minister of Finance, later implicated
The scandal is believed to have caused substantial losses to government institutions and public funds.
