Sri Lanka president to probe controversial bond sale

AFP, COLOMBO: President Maithripala Sirisena ordered an investigation yesterday into alleged insider trading at Sri Lanka’s central bank that has heightened tensions between him and his prime minister.
Sirisena announced he was setting up a special panel to probe the February 2015 bond sales to a relative of the then governor, a hand-picked appointee of Prime Minister Ranil Wickremesinghe.
“I will appoint a Special Presidential Commission of Inquiry this week to investigate the central bank bond issue and recommend actions,” the president said in a brief statement on his website.
The announcement came a day before parliament was due to debate a report by lawmakers who in October recommended the criminal prosecution of former central bank chief Arjuna Mahendran.
While parliament has no powers to instigate prosecutions, the presidential commission could set the stage for criminal charges.
When Mahendran’s tenure ended in June last year, Sirisena denied him an extension and overlooked Wickremesinghe’s alternative candidate, causing more friction within their troubled ruling alliance.
A Singapore national of Sri Lankan origin, Mahendran was accused of leaking inside information to his son-in-law’s firm, allegedly allowing it to make millions of dollars in profits from central bank bond auctions.
Mahendran has consistently maintained his innocence. He has begun working as a senior advisor to Wickremesinghe since being removed from his top post 
at the central bank by the president.

Sri Lanka president to probe controversial bond sale

AFP, COLOMBO: President Maithripala Sirisena ordered an investigation yesterday into alleged insider trading at Sri Lankas central bank that has heightened tensions between him and his prime minister. Sirisena announced he was setting up a special panel to probe the February 2015 bond sales to a relative of the then governor, a hand-picked appointee of Prime Minister Ranil Wickremesinghe. I will appoint a Special Presidential Commission of Inquiry this week to investigate the central bank bond issue and recommend actions, the president said in a brief statement on his website. The announcement came a day before parliament was due to debate a report by lawmakers who in October recommended the criminal prosecution of former central bank chief Arjuna Mahendran. While parliament has no powers to instigate prosecutions, the presidential commission could set the stage for criminal charges. When Mahendrans tenure ended in June last year, Sirisena denied him anextension and overlooked Wickremesinghes alternative candidate, causing more friction within their troubled ruling alliance. A Singapore national of Sri Lankan origin, Mahendran was accused of leaking inside information to his son-in-laws firm, allegedly allowing it to make millions of dollars in profits from central bank bond auctions. Mahendran has consistently maintained his innocence. He has begun working asa senior advisor to Wickremesinghe since being removed from his top post at the central bank by thepresident.