Bond scam : Govt. explores fresh avenues to seek Arjuna Mahendran’s extradition

• The Colombo Permanent Trial-at-Bar bench has already issued a warrant through Interpol for the arrest of former Central Bank Governor Arjuna Mahendran in connection with the bond scam

By Kelum Bandara  

Following Singapore’s rejection of extradition of former Central Bank Governor Arjuna Mahendran implicated in the bond fraud, the government is now exploring fresh avenues to bring him back for litigation, a minister said yesterday.  

Justice Minister Harshana Nanayakkara told Daily Mirror that he instructed the Attorney General to explore other avenues to secure his extradition since the Singaporean authorities declined it previously. 

“I instructed the Attorney General to explore new avenues to net him. We are now working in this direction. In 2021, the Singaporean authorities sent a letter rejecting his extradition,” he said.   
However, he did not elaborate on steps being taken.   
The Sri Lankan Attorney General’s Department sought the extradition of Mr. Mahendran who is implicated in the bond fraud that took place under the Yahapalana government in 2015. Mr. Mahendran, a Singaporean of Sri Lankan origin, was appointed Central Bank Governor at that time. The bond fraud caused a loss of Rs.10 billion to the government at that time.   
The scam involved the issuance of government bonds by the Central Bank under the leadership of Mr. Mahendran as the governor.   
Perpetual Treasuries Limited, a primary dealer in the bond market and owned by Mr. Mahendran’s son-in-law Arjun Aloysius, was a major beneficiary of the bond issuance.   
The Colombo Permanent Trial-at-Bar bench has already issued a warrant through Interpol for the arrest of former Central Bank Governor Arjuna Mahendran in connection with the Central Bank bond scam.