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Cabraal’s media secretary responds to Keerthi Tennekoon’s private plaint

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The Private Plaint filed by Mr. Keerthi Tennekoon (complainant) against Mr. Ajith Nivard Cabraal (respondent) was scheduled to be taken up on May 2, 2022 before Magistrate Harshana Kekunuwela at the Colombo Magistrate’s Court No. 4.

However, that day was declared a public holiday by the Government, and hence certain cases, including the private plaint under reference fixed for that day were postponed by the Court authorities to July 25, 2022.

A few days later, the complainant and his counsel had sought to advance the hearing in this particular case, and, based on an ex-parte application, it had been reported that the court had granted an earlier date of May 23, 2022 for the case to be called.

In that regard, the respondent had to be notified to be present in court on that date by way of an official court summons. However, as at May 22, 2022, such summons had not been served on the respondent personally ordering him to be present in court.

Nevertheless, upon learning that this matter may be taken up by court on May 23 even though summons had not been served on the respondent, out of an abundance of caution, Mr. Cabraal’s lawyers Mr. Shavendra Fernando, PC and Mr Jeevantha Jayatilake, Senior Counsel, were present in court and explained to court the serious circumstances in the country that had resulted in the respondent having to be away from his residence. They also assured court that the respondent would be present in court on the scheduled date of July 25, 2022, as previously fixed by the court authorities.

On that day, the respondent’s lawyers would comprehensively refute the complainant’s allegations, and make it clear that such allegations leveled by the complainant are false &/or misfounded &/or politically-motivated &/or malicious.

In this context, with regard to the complainant’s allegations, it is noted that the same complainant (Mr. Keerthi Tennekoon) had previously filed a Petition in the Court of Appeal on September 14, 2021 based on certain alleged “findings” in a “Forensic Audit Report” dated November 8, 2019 carried out by an Indian company, “BDO India LLP”, pertaining to the issuance of Treasury Bonds and the conduct of Primary Dealers from 2010 to 2017.

In that case too, Mr. Ajith Nivard Cabraal was named as a respondent. That petition had been since dismissed by the Court of Appeal on November 3, 2021. This vital information has however been suppressed from the Magistrate’s Court by the complainant, and it is very likely that, if the complainant had properly disclosed the Court of Appeal Order to the Honourable Magistrate, this allegation in the private plaint would not have even been entertained.

It is also noted that another allegation of Mr. Tennakoon pertains to a payment of USD 6.5 million made by the Government of Sri Lanka (GOSL) in respect of a Communication Program of the GOSL with a US National, Mr. Imaad Zuberi. In that context, as the banker to the government, the payments made by the CBSL on behalf of the GOSL have been made on the official written instructions of the appropriate government authority, and the respective payment protocols and procedures had been followed by the CBSL when making these payments.

Therefore, there has been no procedural or other violation in making these payments on behalf of the GOSL, and accordingly, this allegation of the complainant is also not sustainable.Mr. Tennakoon’s next allegation refers to the settlement of the GOSL’s USD 500m International Sovereign Bond (ISB) that matured on January 18, 2022, where it has been claimed that such settlement was done by the respondent notwithstanding the advice of various experts, in order to enable certain unspecified investors to make undue profits.

In this context, it must be clearly understood that settling or not settling the country’s sovereign debt is not a matter where a single individual can arbitrarily decide. It is of course possible that self-proclaimed experts (who bear no responsibility for their unsolicited advice) could advocate the non-payment of Sri Lanka’s foreign loans, including a maturing ISB.

However, such unofficial requests cannot be acted upon by responsible government officials without a formal direction or order from the Government (the Borrower) and perhaps even the approval of Parliament since funds for “debt servicing” had already been appropriated by Parliament when it approved the Budget 2022.

Further, at the time in question, the official Government policy was to pay its sovereign debt diligently, which policy, the Ministry of Finance and the CBSL had followed faithfully since Sri Lanka gained independence in 1948. Needless to say, such policy could not have been unilaterally abrogated by the Governor of the CBSL on January 18, 2022 as claimed by the complainant, and therefore this allegation too, is baseless and misfounded.



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Removing monk’s robes matter for Sangha to decide: Mahanayake Theras

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Ven. Gnanasara

The Mahanayaka Theras of all Nikayas have protested against Bodu Bala Sena (BBS) General Secretary Ven. Galagodaaththe Gnanasara Thera, who is serving a prison sentence for contempt of court, being produced before court in civilian attire.

In a letter to the Commissioner General of Prisons, the Mahanayaka Theras have said they were surprised and concerned by the decision to remove the monk’s robes.

The letter has been signed by Most Ven. Thibbotuwawe Sri Siddhartha Sumangala Thera of the Malwatu Chapter, Most Ven. Warakagoda Sri Gnanarathana Thera of the Asgiri Chapter, Most Ven. Karagoda-Uyangoda Maithri Murthi Thera of the Amarapura Maha Nikaya and Most Ven. Makulawe Sri Wimala Thera of the Ramanna Maha Nikaya.

The Mahanayaka Theras have said they respect the Constitution and the judicial process, but maintained that removing a monk’s robes or ending his status as a member of the Buddhist Order is a matter that should be decided by the Maha Sangha.

They have said the relevant Sangha Council has not determined that Ven. Gnanasara Thera committed a Parajika offence or any other offence warranting his removal from the Buddhist Order.

The Mahanayaka Theras have also referred to Regulation 550 of the Prison Standing Orders, which they say stipulates that convicted prisoners should not be taken to court in prison uniform and should be allowed to wear the type of clothing they normally wore before their conviction. In the case of a Buddhist monk, they have said, this means his monastic robes.

They also referred to the United Nations Standard Minimum Rules for the Treatment of Prisoners, which provide for prisoners taken outside prison to be allowed to wear their own clothing or other unobtrusive clothing.

The Mahanayaka Theras have requested the Commissioner General of Prisons to allow Ven. Gnanasara Thera to wear his robes when appearing in court and to maintain his status as a monk while he remains in prison.

Prisons authorities have said that the clothing decision was made under prison regulations, and the Prisons Department has stated that prisoners serving sentences of more than three years are required to wear prison-issued clothing when produced before court.

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NDB fraud Rs 60mn more than reported

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The Committee on Public Finance has said that the actual losses suffered by the NDB bank are much more than what was initially reported. When compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud had increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion, the committee said.

When compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.

The has committee issued the following statement: The Committee on Public Finance recently summoned officials of the Central Bank of Sri Lanka to Parliament to inquire into the financial irregularities identified at NDB Bank and the final audit report relating to the matter.

The Committee meeting, chaired by Member of Parliament Dr. Harsha de Silva, discussed irregularities identified in NDB Bank’s financial statements, shortcomings in the audit process, and the relevant audit reports.

The meeting was attended by Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayaweera, as well as Members of Parliament Attorney-at-Law Rauff Hakeem, Ravi Karunanayake, Ajith Agalakada, Nimal Palihena, Wijesiri Basnayake, M.K.M. Aslam, Champika Hettiarachchi, and Attorney-at-Law Lakmali Hemachandra.

The Committee also focused on the findings of the investigation conducted by the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAAMB), as well as the findings revealed through the investigation conducted by Deloitte Touche Tohmatsu India LLP. In particular, the Committee inquired into the failure of the external auditors to identify irregularities in NDB Bank’s financial statements.

The accountability of senior management with regard to corporate governance and risk management in relation to the financial irregularities was also discussed.

As a significant proportion of NDB Bank’s shares are held by institutions representing public and state funds, the Committee also considered the potential impact of such financial irregularities on public funds and the general public.

The Committee also discussed the progress made by LankaPay in establishing a centralized fraud monitoring system to prevent fraud within the financial system. The need to strengthen fraud monitoring systems at the individual bank level to monitor transactions carried out within each bank was also emphasized.

Accordingly, the following observations are included in the final audit report concerning the financial irregularities at NDB Bank:

1. The audit covers the period from 1 April 2016 to 31 March 2026. The audit report specifically identifies the financial impact arising from fraudulent transactions amounting to Rs. 13,639,664,684 (Rs. 13.6 billion).

2. According to the disclosure made on 29 September 2026, the financial impact arising from the fraudulent transactions is as follows:

· Rs. 1.5 billion for the period prior to 1 January 2025;

· Rs. 9.6 billion during 2025; and

· Rs. 2.5 billion for the quarter ended 31 March 2026.

3. Compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud has increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion. Compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.

4. The final audit report has also confirmed the previous disclosures that no customer accounts were affected as a result of the fraud incident.

5. The report has identified several governance failures at NDB relating to the processing of CEFT transactions, user-level activities within the Core Banking System, and the management of user credentials and access information. In addition, shortcomings have been identified in several operational areas, including transaction monitoring, daily account reconciliation, financial compliance, internal audit, branch network management, and operational risk management.

The audit report has made comprehensive recommendations to strengthen the control mechanisms, governance structures, and processes relating to the above-mentioned activities of the bank.

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President orders review of laws on treatment of imprisoned monks

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President Anura Kumara Dissanayake has ordered the formation of a committee to review the laws and regulations on how Buddhist monks serving prison sentences are treated, including the procedures that apply when they are taken out of prison.

He revealed this at a special meeting with Maha Sangha representatives held yesterday (8) at the Presidential Secretariat. The meeting was called after concerns were raised over how Ven. Galagoda Aththe Gnanasara Thera was treated when he was taken from prison to court.

The committee will recommend amendments to existing laws and, where needed, new prison standing orders and regulations. Its members will be drawn from the Attorney General’s Department, the Ministries of Justice, Public Administration, and Buddha Sasana, Religious and Cultural Affairs, and the Department of Prisons, including the Commissioner General of Prisons. It has been given two weeks to review the current legal provisions and submit its recommendations. The President added that any changes specific to Buddhist monks would be made in consultation with the Maha Sangha.

Outlining the legal background, the President said prison administration was governed by the Prisons Ordinance of 1877, along with the regulations and standing orders issued under it. That framework mostly addressed prisoners in general, he said, and had few provisions dealing specifically with Buddhist monks.

The meeting was attended by senior Maha Sangha members representing the Siyam, Amarapura and Ramanna Nikayas, along with Minister of Buddhasasana, Religious and Cultural Affairs Hiniduma Sunil Senevi and Minister of Justice Harshana Nanayakkara.

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