INSUBCONTINENT EXCLUSIVE:
Arjuna Mahendran who is wanted in connection with an investigation into a bond sale
President Maithripala Sirisena said in January that a presidential commission investigating 2015 bond sales had recommended legal action
against Mahendran, a Sri Lankan-born Singapore citizen who was central bank governor at the time, and several others
Opposition lawmakers have alleged the 2015 bond auction cost the state more than $1 billion because of rising borrowing costs
Mahendran was not immediately available for a comment and his whereabouts were not known
A Sri Lankan court in February arrested the owner of dealer Perpetual Treasuries Ltd, Arjun Aloysius, who is also the son-in-law of
Mahendran, and its chief executive, Kasun Palisena, on suspicion of involvement in the alleged scam
Aloysius and Palisena have also denied any wrongdoing
The presidential commission also recommended legal action against the then finance minister, Ravi Karunanayake
He resigned from his portfolio in August
He has also denied wrongdoing
The central bank said in January it had suspended four officers and taken disciplinary action against several others in connection with the
allegations of irregularities in the 2015 government bond auction and it had initiated several legislative changes aimed at preventing
irregularities arising in connection with future bond issues
Reporting by Shihar Aneez; Editing by Robert Birsel
