News

Treasury bond scam case: Controversy over flawed indictments that caused dismissal of some charges against Ravi, Mahendran, PTL, others

Published

4 years ago

2022/03/7

Sahan Weerasooriya

Trial-at-Bar highlights major flaw in Offences against Public Property Act, AG Dept.’s failure

By Shamindra Ferdinando

The Colombo High Court Trial-at-Bar had dismissed some of the charges filed against former Finance Minister Ravi Karunanayake, fugitive ex-Central Bank Governor Arjuna Mahendran and nine others in respect of Treasury bond scam perpetrated on 29 March 2016, due to the flawed indictments, legal sources told The Island yesterday (5).

Former President of the Bar Association of Sri Lanka (BASL), who is also the advisor to the Justice Ministry U. R. de Silva, PC, confirmed the issue at hand.

The Trial-at-Bar comprising Damith Thotawatte (Chairman), Manjula Thilakaratne and M. Izzadeen by a majority decision dismissed the relevant charges.

The court turned down a plea by State Counsel Lakmini Girihagama to alter the charge sheet last Friday (4). Karunanayake’s Counsel, Shavendra Fernando, PC, objected to the request made on behalf of the Attorney General. Judge Issadeen stated that charges could be maintained.Responding to The Island query, U.R. de Silva explained that under the Public Property Act (1982) only individuals could be indicted. But in the case of Treasury bond scam both individuals and Perpetual Treasuries (PTL) had been indicted, the President’s Counsel said, acknowledging it was a matter for serious concern. The first accused was the PTL, and other individuals.

The court was told the word ‘person’ hadn’t been interpreted in the Public Property Act hence the dispute. The Trial-at-Bar also held that though the interpretation in respect of ‘person’ in Penal Code could have been used but the Public Property Act didn’t make any reference to in this regard. The Trial-at-Bar, pointed out a major flaw in filing of the charges.

The incumbent President of BASL Saliya Peiris, PC, was not available for comment.

The indictments were filed during Dappula de Livera’s tenure as the AG. Sanjay Rajaratnam succeeded de Livera in May last year.

Attorney-at-Law and civil society activist Nagananda Kodituwakku said Friday’s discharge of Treasury bond scam suspects had prompted him to make inquiries from relevant parties.

Lawyer Kodituwakku said that those charged for Treasury bond scam had been discharged by the HC Trial-at-Bar only from some of the charges on the basis that only natural persons could be charged for robbing public funds and not companies such as the Perpetual Properties under the Public Property Act. There had been a similar judgment given by the HC in the recent past and that decision had been challenged by the Attorney General and the matter was still pending, the lawyer said.

Earlier, on 30 December 2017, a Presidential Commission of Inquiry (PCoI) headed by Justice K T Chitrasiri, had probed the Treasury bond scams, identified these suspects as being responsible for the fraud, and directed the Attorney General to initiate criminal proceedings against them, Kodituwakku said. Therefore, there was no truth in what was being circulated in the public domain that all suspects have been discharged by the judiciary, the lawyer said.

The PCoI consisted of Chairman Justice K.T. Chitrasiri, the late Justice P S Jayawardene and retired Deputy Auditor General, V Kandasamy.

Earlier, on 06 Dec., 2021, 11 persons including former MP Karunanayake and Arjuna Mahendran were indicted.

The three-judge Trial at Bar declared that as the 11 charges filed against the suspects couldn’t be sustained, they were dismissed.

The AG filed indictments against the suspects for conspiracy to commit criminal misappropriation in respect of Treasury bonds to the face value of Rs 36.98 billion on March 29, 2016.

The first Treasury bond scam was perpetrated on 27 Feb. 2015. The suspects are Ravi Karunanayaka, Arjuna Mahendran, Arjun Aloysius, Kasun Palisena, Jeffrey Joseph Aloysius, Chitta Ranjan Hulugalle, Muthuraja Surendran, Ajahn Gardige Punchihewea and Batugoda Hewa Indika Saman Kumara.

Kodituwakku pointed out that the dismissal of some of the charges in respect of the high-profile Treasury bond scam should be examined against the backdrop of the AG and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) withdrawing over 50 cases since the last presidential election.

The competence of the AG’s Department was raised in the Colombo High Court rulings given in respect of former Defence Secretary Hemasiri Fernando and ex-IGP Pujith Jayasundera in the Easter Sunday case.

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News

Former IGP’s death likely due to an accidental weapon discharge

Published

9 hours ago

2026/07/19

Thilina Walpola

Wickramaratne

He was examining security officer’s new weapon while waiting for his wife to join him on a morning walk

Friday’s shock death of former IGP Chandana Wickramaratne due to gunshot injuries on his chest was possibly due to an accidental discharge of his personal security officer’s (PSO’s) pistol. Wickramaratne, who was kitted for his walk and waiting on the verandah for his wife to join him, was examining the PSO’s new weapon, knowledgeable sources said.

These sources said the wife who was putting on her shoes inside the house heard a bang and found Wickramaratne fallen on the verandah.

The retired IGP had noticed the security officer carrying a new weapon and had asked to examine it. Saying he carried a similar weapon years ago, he found no magazine and said, “are you planning to accompany me on my walk with a pistol without a magazine?”

The PSO had then handed the loaded magazine and gone into the house to fetch a requested bottle of water when the weapon had gone off.

The sources said that Wickramaratne was in no way depressed and had attended an Ananda College old boy’s event a few days ago, had dinner with friends and chatted with them. He had an appointment to meet a friend on Saturday.

Friends and family saw no reason for Wickramaratne to take his own life and there was no evidence whatever of an external agent shooting him. The former IGP was pronounced dead at the Colombo East Teaching Hospital to which he was rushed.

Police said investigations were proceeding and an autopsy report was awaited.

Wickramaratne was appointed the 35th Inspector General on November 25, 2020 and retired three years later in 2023. He had also set a record as the longest serving acting IGP since his naming to that position in May 2019 after his predecessor Pujith Jayasundara was sent on compulsory leave.

He joined as a trainee Assistant Superintendent in June 1986 after graduating from the Colombo University. He was absorbed to the National Intelligence Bureau where he worked till 1995. Thereafter he reverted to the uniform service and had been posted across the country, including the northern and eastern areas at the height of the war.

News

Rosy Senanayake appears before CMC corruption probe commission

Published

9 hours ago

2026/07/19

Thilina Walpola

This image, taken from Derana TV footage, shows former Colombo Mayor Rosy Senanayake arriving at the Presidential Commission of Inquiry on Friday

Former Colombo Mayor Rosy Senanayake appeared before the Presidential Commission of Inquiry appointed to investigate allegations of corruption and fraud at the Colombo Municipal Council (CMC) on Friday (17).

Speaking to the media after appearing before the commission, Senanayake said she had been summoned to provide information regarding a food voucher programme implemented during her tenure as Mayor amid the COVID-19 pandemic and the economic crisis.

She said the programme, carried out through state-owned Lanka Sathosa, was introduced to provide assistance to low-income and vulnerable families affected by the economic hardships during the period.

“We gave food vouchers from Sathosa to the poor during the pandemic and economic crisis.

They wanted answers to some questions they had regarding the programme,” Senanayake said.The Presidential Commission is currently investigating allegations relating to financial irregularities, corruption and other misconduct within the Colombo Municipal Council.

News

Cop suspended after sitting on female cop’s lap

Published

9 hours ago

2026/07/19

Thilina Walpola

A police constable has been suspended from service following an inquiry into allegations that he sat on the lap of a female police constable while under the influence of alcohol at the Makalugaswewa Police Station.

Police said the constable had reported for duty at a musical concert held at the Dambulla Gam Udawa Stadium on July 15 and later returned to the police station to resume duties.

According to initial reports, the constable allegedly sat on the female officer’s lap after seeing her seated on a chair at the station.

The female police constable subsequently lodged a complaint with the Assistant Superintendent of Police (ASP) in charge of the area through the Officer-in-Charge (OIC) of the police station.

A preliminary investigation into the incident found that the constable had allegedly been under the influence of alcohol at the time of the incident.

Following the inquiry into the alleged harassment of the female officer and the constable’s conduct while on duty, police authorities took steps to suspend his service pending further action.

by Norman Palihawadane ✍️