The Supreme Court of Sri Lanka today rejected the Fundamental Rights (FR) petition seeking an independent inquiry into the controversial Central Bank Treasury bond issue and it’s Governor Arjuna Mahendran.

Central Bank Governor Arjuna Mahendran, who was accused of being involved in irregular activities in the bond issue due to his son-in-law’s family firm securing 50 percent of the said Rs.10 billion bond, has returned to work after a committee appointed by Prime Minister Ranil Wickremasinghe cleared him of his role.

It has been alleged that “insider trading” has taken place in the transaction in which the Mahendran’s son-in-law’s firm has been benefited.

Mahendran resumed work after a 3-member inquiry committee had decided that he was not ‘directly’ involved. The report of the committee however has not yet been tabled in parliament.

Members of the opposition have handed over a motion to the Speaker of parliament seeking action against the Governor.

The FR petition was filed last month by three good governance activists - Dr. G. Usvattearachchi, Dr. A.C. Visvalingam and Chandra Jayaratne.