Former NSB Chairman given 5-year suspended sentence

The Colombo Magistrate Court yesterday gave a five-year suspended sentence to former National Savings Bank (NSB) Chairman Pradeep Kariyawasam over the corruption charges filed by the Bribery Commission.

Colombo Chief Magistrate Ranga Dissanayake, in addition to the suspended prison sentence, also fined Pradeep Kariyawasam Rs. 300,000.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) filed legal action at the Colombo Magistrate Court against Kariyawasam for alleged corruption in a transaction where the NSB purchased The Finance Company (TFC) shares at an inflated price in April 2012. The charges against Kariyawasam involve acquiring over 7.86 million shares of The Finance Company for over Rs. 391 million when he was the Chairman of NSB. NSB, through four separate transactions, has purchased 13.02% stake of The Finance Company at Rs. 49.74 per share when the market price was around Rs. 30-31 per share.

The transaction was later cancelled by the Government and the controversy resulted in the resignation of the NSB Chairman and several Board members of NSB.

Kariyawasam was charged with four counts of corruption under Section 7 of the Bribery Act for knowingly getting involved in a procedure that could cause losses to the Government.

Pradeep Kariyawasam is the husband of former Chief Justice Dr. Shirani Bandaranayake, who was impeached by the former Mahinda Rajapaksa Government. The allegation against Kariyawasam was also included in the impeachment motion brought against Chief Justice Dr. Shirani Bandaranayake.