President under pressure to remove Central Bank Governor

Arjuna MahendranThe Government should sack Central Bank chief Arjuna Mahendran if his conduct has been found “undesirable”, the country’s Petroleum Minister today demanded amid allegations that the top banker’s son-in-law benefited unduly from a USD 76 million bond auction, the Press Trust of India reported.

The demand has piled pressure on President Maithripala Sirisena, who won elections in January last year on a promise to end cronyism and corruption, from his own Freedom Party.

“If (Mahendran’s) conduct had been found undesirable he should be removed for the good of the President and the Prime Minister,” Minister of Petroleum Chandima Weerakkody said.

Mahendran, who was appointed as Central Bank Governor by Prime Minister Ranil Wickremesinghe, has been under fire since March last year after his son-in-law was accused of unduly benefiting from a USD 76 million bond auction.

The opposition and local media have alleged that the bonds were issued at an above-marketinterest rate and that a company owned by Mahendran’s son-in-law bought about half of the bonds.

They allege that the family member benefited from inside information about the rate and volume of bonds the bank planned to issue.

The Central Bank governor, whose term is set to end at the end of this month, has denied any wrongdoing. (Colombo Gazette)

3 COMMENTS

  1. The wrong doing of CB Governor of the Bond Trading is crux of matter is not personal, that is nation survival and its economic development.
    We have to have national interest of country and nation above beside political differences and parties.
    CB governor must sack by President immediate effect.

  2. People have their doubts on the Treasury Bond as well as doubts on the ultimate beneficiary or beneficiaries. These are talks of the town. . It appears that the Chief Dealer of Bank of Ceylon has become a forced victim for deeds at BOC. Was he found fault by the BOC Management. Was It an eye wash at BOC? Mahendran being a top professional should have resigned on his own volition instead of being forced out.

  3. The Central Bank governor, whose term is set to end at the end of this month, has “denied any wrongdoing.” old adage when you are in trouble deny, deny, deny, and then deny
    He must have plagiarize these words from Louis Lerner US IRS chief.

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