Prime Minister Ranil Wickremesinghe told Parliament that Central Bank Governor Arjuna Mahendran is to go on leave until the Bond Issue investigations are concluded.

Recently, the Central Bank of Sri Lanka announced the issue of Treasury Bonds to the value of Rs 01 billion maturing in 30 years. A particular Primary Dealer too had reportedly submitted its bid.

However, market sources stated that this Primary Dealer had submitted bid for this auction requesting for Treasury Bonds worth Rs. 05 billion and that its interest rate was as high as 12.5 per cent.

By now, there are allegations that the Central Bank initially announcing the issue of bonds for only Rs. 01 billion but later increasing it to Rs. 10 billion and while the other dealers had bought these bonds at a normal interest rate of 11.73 per cent this particular dealer having bought the requested entire Treasury Bonds and most of them being at an interest rate as high as 12.5 per cent, raise suspicions.

President Maithripala Sirisena ordered the President’s secretary to appoint a three-member committee to investigate into this issue and if there are any irregularities in this Treasury Bond issue then severe punishment be meted out to the officials or individuals involved, whatever their status or positions.