CJ gives permission for AG to indict 10 bond scam suspects

Friday, 14 June 2019 00:20 -     - {{hitsCtrl.values.hits}}


  • CJ responds to AG request to indict suspects, including Mahendran and Aloysius
  • To file 23 counts including criminal misappropriation and criminal breach of trust  
  • Trial to be heard at Special High Court
  • Charges based on evidence presented during Presidential Commission 
  • More indictments possible


Chief Justice Jayantha Jayasuriya yesterday gave permission for the Attorney General to indict ten people linked to the bond scam, including former Central Bank Governor Arjuna Mahendran, and his son--in-law Arjun Aloysius, at the Special High Court. 

Chief Justice 

Jayantha Jayasuriya

The trial will be taken up by the Permanent High Court trial-at-bar. In addition to Mahendran and Aloysius, the former Deputy Governor of the Central Bank P. Samarasiri, along with seven other directors of Perpetual Treasuries Limited (PTL), the primary dealer at the centre of the controversial Treasury Bond auction on 27 February 2015, are to be indicted on 23 counts, including criminal misappropriation and criminal breach of trust under the Penal Code, Public Property Act, and the Registered Stocks and Securities Ordinance.

Lakshman Arjun Mahendran, CBSL's former Deputy Governor Paththinige Samarasiri, Perpetual Treasuries Ltd., Arjun Joseph Aloysius, Kasun Oshadhee Palisena, PTL directors Jeffery Joseph Aloysius, Pushya Mithra Gunawardane, Chitta Ranjan Hulugalla, Muthuraja Surendran and Ajahn Gardier Punchiheva will be indicted by the Attorney General in connection with the bond scam.

The suspects will be indicted in connection with the charges arising from the Treasury Bond auction held on 27 February 2015 (in respect of the face value of Rs. 10.058 billion) causing a Rs. 688 million loss to the Government.

The charges had been formulated based on evidence presented during the Bond Commission Inquiry, conducted by the Commission of Inquiry appointed by the President, and also considering the material disclosed during the investigation conducted by the CID. According to the Auditor General, the estimated avoidable loss suffered by the Government at this auction alone (on 27 February 2015) was approximately Rs. 688,762,100. 

The Attorney General on 7 June wrote to the Chief Justice seeking direction on the indictments, and the constitution of a trial-at-bar at the Colombo High Court to institute criminal proceedings against the suspects implicated in the controversial bond auction. At the time, the AG’s Department said more indictments were also possible. 

“No sooner the directive is received from the Chief Justice, the Attorney General will file indictments on 23 counts against 10 suspects,” Coordinating Officer to the Attorney General State Counsel Nishara Jayaratne said at the time in a media release.

State Counsel Jayaratne’s media release referred to the bond scam as the “largest organised financial crime perpetrated in this country by any person or persons which had an impact on the Financial Markets and the country’s economy.” (MP) 


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