Greek bond case Former CBSL governor Cabraal ordered to pay Rs. 1.84 billion compensation, released on conditions

By Bhagya Silva  

Former Central Bank Governor Ajith Nivard Cabraal was released on conditions in connection with the Greek bond case, while the three other accused were released unconditionally by Colombo High Court Judge Mohammed Mihal yesterday.  

The allegations centered on the claim that, despite Greece being in a severe economic crisis, the former Central Bank officials knowingly purchased government issued treasury bills, causing a loss of over Rs. 1.84 billion to the government. The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) had filed the case against Cabraal, former Deputy Governor Dharmasena Dheerasinghe and Assistant Governors Don Vasantha Ananda Silva and M.A. Karunaratne.  

In the case filed at the Colombo High Court against former Governor of the Central Bank of Sri Lanka, Nivard Ajith Leslie Cabraal and four others, the indictments against the first accused Nivard Ajith Leslie Cabraal were considered for withdrawal under Section 67(1) of the Bribery Act.  

Following a request made by the first accused in this regard and after the Director General examined the matter under Section 67(2) of the Bribery Act with the approval of the Commission to Investigate Allegations of Bribery or Corruption, the indictments against the first defendant were withdrawn today under Section 67(3) of the Bribery Act.  

After considering the submissions, the judge ordered that Cabraal be released under conditions in accordance with Section 67 of the Bribery Act. The other three accused Dharmasena Dheerasinghe, Don Vasantha Ananda Silva, and M.A. Karunaratne were released without conditions under Section 194(3) of the Code of Criminal Procedure.  

The High Court Judge granted permission to withdraw these indictments. Accordingly, the first accused is required to remit a sum of Rs. 1,843,267,595.65 as compensation to the account provided by the Central Bank of Sri Lanka within a period of three months.  

Failure to deposit this amount within the stipulated three month period will result in the reinstatement of the indictments against him under Section 67(5) of the Bribery Act.  

Earlier, in 2024, CIABOC had filed indictments against the same accused before the Colombo High Court. After considering preliminary objections raised by the accused, the High Court had ordered on May 31, 2024, that the accused be released without being served the indictments due to a technical defect raised by CIABOC regarding the date of signing the indictments.  Subsequently, CIABOC had re-filed the case against the accused on August 21, 2024.