Published On: Tue, May 9th, 2017

Mahendran’s transfer list astonishing – Dy. Governor

The Deputy Governor of the Central Bank (CB) Dr. Nandalal Weerasinghe, giving evidence before the Special Presidential Commission (SPC) appointed to probe the CB Treasury Bond scam, said that he was astonished after having looked at the list of persons transferred by former Governor Arjun Mahendran in January 2015.

Dr. Weerasinghe told the Commission that Mahendran had appointed Deepa Seneviratne to the post of State Loan Director despite the fact that this individual did not possess the knowledge to function in that particular post.

Dr. Weerasinghe stated that a loan of Rs. 11 billion had not been paid by Perpetual Treasuries and he had been informed of this by the Domestic Sales Control Director of the Central Bank Nihal Rodrigo.

The Commission comprises Supreme Court Justices K. T. Chandrasiri and Prasanna Jayawardene and former Auditor General V. Kandasamy.

The Commission was formed by the President to probe the sale of CB Bonds from 1 February 2015 to 31 March 2016.

Dr. Nandalal Weerasinghe was giving evidence led by Senior State Counsel Shahida Bari.

Q – Have you heard before that a CB Governor was present of at the Domestic Sales Control Committee?

A – No. I have not even heard about a previous CB Governor being present there.

Q – Have you ever functioned in the capacity of Acting CB Governor?

A- Yes, I functioned in such a capacity in September of 2013.

Q- Did any discussion take place other than the change of interest rates during the Monetary Board meeting held in February 2015?

A- Yes. It was discussed on how to probe the issuance of bonds during the past 30 years.

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