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Friday, 22 September 2017 - 19:43
AG Dept. questions fmr. CBSL Governor

It was revealed before the Presidential Commission of Inquiry, probing the controversial bond issuance, today (22) that the then Finance Minister Ravi Karunanayake had issued a forged letter to the then Central Bank Governor Arjuna Mahendran to justify the acquiring of a large amount of money from the controversial Central Bank bond issuance.

Acting solicitor General and President Counsel, Dappula de Livera stated this while cross-examining Arjuna Mahendran before the Bond Commission.

A discussion had been held between the then Finance Minister Ravi Karunanayake and several other Ministers before the controversial bond issuance.

It had been decided at this discussion to inform Arjuna Mahendran to acquire 75 billion rupees to repay loans obtained for road development projects.

The controversial undated letter without any reference prepared under the Finance Ministry Official logo was produced to Commission today by Arjuna Mahendran.

When the Commission inquired why that letter still looks fresh, Mahendran said that it was kept in an envelope and placed in an air-conditioned environment.

The PC de Livera said that this letter has been prepared fradulently, to be produced solely to the Commission.

He added that the requirement of Rs. 75 billion has been mentioned in the letter to justify Arjuna Mahendran's intervention to raise a huge amount of money from the bond issuance.

The President Counsel said that the monetary requirement of the government is officially informed to the Central Bank by the Department of Treasury Operations of the Finance Ministry, but it was ignorant about this notice.

He quoted evidence by the officials of the Finance Ministry's Department of Treasury Operations to prove his argument.

The President Counsel further said that the evidence of the Department of Treasury Operations officials prove that this dealing was known only to Arjuna Mahendran and Ravi Karunanayake.

Quoting Handzard Reports, President Counsel Dappula de Livera said the Prime Minister had told in parliament that the financial requirement of the government was not 75 billion but it was 15 billion rupees.

He said Perpetual Treasuries Limited had definitely kept bidding for those 15 billion rupees in the controversial bond issuance.

The President Counsel also said that the then Central Bank Governor Arjuna Mahendran unusually interfered to win the bidding for Perpetual Treasuries Limited on the day the controversial bond issuance was held.

Rejecting the statement by the President counsel Dappula de Livera, Arjuna Mahendran said that he intervened in the controversial bond issuance in order to acquire the government requirement of 172 billion rupees.

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