Arjuna Mahendran and another to be tried in absentia by the High Court Trial-at-Bar

Colombo High Court Trial-at-Bar today allowed the Attorney General to proceed with the trial in respect of the third Central Bank Bond auctions case without two key accused present in Court.

Accordingly, former Central Bank Governor Arjun Mahendran and Ajahn Gardiya Punchihewa will be tried in absentia.

The Colombo High Court Trial-at-Bar bench comprising High Court Judges Amal Ranaraja, Namal Balalle and Aditya Patabedige made this order in terms of section 241 of the Criminal Procedure Code according to a request made by the Attorney General.

The Court was informed that two accused are evading courts since the inception of the investigations into the incident.

The indictments had been filed against Perpetual Treasuries Private Ltd, former Finance Minister Ravi Karunanayke, CBSL former Governor Arjuna Mahendran, Perpetual Treasuries Limited (PTL) beneficiary owner Arjun Aloysius, PTL Chief dealer Kasun Palisena, Chairman of PTL Jeffrey Joseph Aloysius, Chitta Ranjan Hulugalle, Muthuraja Surendran, Ajahn Gardiye Punchihewa and Badugoda Hewa Indika Saman Kumara in connection with a bond auction held on March 31, 2016.

The Attorney General alleged that the Perpetual Treasuries Limited had been using the Central Bank's important undisclosed information to artificially alter the outcome of the Treasury bond auction. This fraudulent act has had a huge impact on the overall national economy. As a result of the subtle and systematic conduct of the offenders related to this fraud, an injustice had been perpetrated on the other primary dealers in the bond market.  The PTL had allegedly acted cunningly and had made a huge profit and conspired to cause a huge loss to the government.