Thursday Jun 11, 2026
Thursday Jun 11, 2026
Friday, 8 May 2026 04:18 - - {{hitsCtrl.values.hits}}
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has refiled a case before the Colombo High Court against former Central Bank Governor Ajith Nivard Cabraal over the purchase of Greek Treasury bond investments in 2012, alleging the transactions caused a loss of more than Rs. 1.84 billion to the Government.
The case was refiled under Section 67(5) of the Anti-Corruption Act after Cabraal allegedly failed to comply with a court-imposed condition of returning the funds within three months.
In December 2025, the Colombo High Court granted permission to discharge former Central Bank Governor Ajith Nivard Cabraal on condition that he compensate the Central Bank of Sri Lanka for losses incurred from investments in Greek Government bonds.
The Court directed Cabraal to transfer over Rs. 1.8 billion to the CBSL within three months, warning that further indictments could follow if the order was violated.
Cabraal, who served as Central Bank Governor from July 2006 to January 2015, had been accused of causing losses exceeding Rs. 1.8 billion to the Government through investments in Greek Government bonds between March 2011 and November 2012, during a period of severe economic instability in Greece.
In representations made at the time to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), Cabraal’s legal counsel acknowledged his participation in the decision-making process surrounding the investments, but argued there was no intention or knowledge on his part to cause wrongful or unlawful losses to the Government.
The defence also stressed that the decision to invest in the bonds had been collective in nature, with Cabraal acting on recommendations made by Deputy Governors and senior Central Bank officials. His lawyers maintained there was no evidence that he had acted arbitrarily.
The representations further pointed to documented CBSL records indicating overall yield profitability as evidence of the good faith of both Cabraal and the Monetary Board, while also invoking statutory protections available under the Monetary Law Act for actions carried out in good faith.
CIABOC stated on 10 December 2025 that it had agreed to withdraw the indictment against Cabraal, the first accused in the case, subject to the payment of compensation amounting to Rs. 1,843,267,595.65 to the CBSL under Section 67(3) of the Anti-Corruption Act.
Cabraal and four other senior Central Bank officials had been indicted before the High Court on charges of conspiracy to commit corruption under Sri Lanka’s bribery laws. Cabraal was separately indicted over his alleged role in the Greek bond investments.
CIABOC also noted at the time that further action could be instituted against Cabraal under Section 67(5) of the Anti-Corruption Act if the compensation was not paid within the stipulated period.
The indictment against Cabraal was initially withdrawn under Section 67(1) of the Act, while the four other accused in the case were acquitted under provisions of the Penal Code.
