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Central Bank ex-Deputy Governor, Perpetual directors arrested

Central Bank of Sri Lanka/CBSL

ECONOMYNEXT – A deputy governor of Sri Lanka’s central bank and directors of a dealer in government securities linked to the biggest securities scam in the island have been arrested, police said.

Retired Deputy Governor Pathinige Samarasiri, directors of Perpetual Treasuries Chithra Ranjan Hulugalle, Pasumithra Gunewardene and Muthuraja Surendran was arrested by the criminal investigation department, police spokesman Ruwan Gunaskera said.

Perpetual Treasuries was involved in securities scams involving bidding at rigged bond auctions, where larger than announced volumes were sold when Arjuna Mahendran, the father of Perpetual Treasuries chief Arjun Aloysius was the governor of the central bank.

Deputy Governor Samarasiri was in charge of debt sales in 2015 and 2016 when the scams took place.