CB regulation violation case: No documents, cross examination postponed

By T. Farook Thajudeen

Colombo High Court on Tuesday (29) further postponed till 6 June the cross examining of a former Director of Central Bank due to non production of original document file during the cross examination.

During the trial against Nexia Corporation, Linton Sirisoma and Ravi Karunanayake for alleged money laundering by violating the regulations of the Central Bank and Exchange Control Act, the Judge made the order.

When the matter was taken up for trial, while President Counsel Rienzie Arsekularatne cross-examined the retired Deputy Director of the Central Bank, it was observed that a purported letter sent by the Bank to Parliamentarian Ravi Karunanayake, the witness did not able to produce the original document file. He only produced certified copies of the supposed documents and on the objection raised by defence counsel the hearing was terminated.

Judge Sunil Rajapaksa ordered the witness to produce the originals documents on the next date and it was postponed for 6 June.

The Attorney General indicted the accused before the Colombo High Court for violating the Exchange Control Act by depositing US$ 3 million in an account of Standard Chartered Bank that was sent to purchase shares in the Union Bank and allegedly intending for money laundering.

It was alleged that on 22 December 2006, Ravi Karunanayake had aided and abetted a non resident of Sri Lanka Ray Rajaratnam of Galion Investments International Master Prime Establishment to deposit US$ 3 million at the Standard Charted Bank Kirulapone without the authority of the Central Bank.

The other accused Nexia Corporation Services Limited and Linton Sirisoma were alleged that they without following the usual procedure of transacting the money via the Seara account had deposited the money in the Standard Chartered Bank instead of depositing it in the Union Bank by violating the regulations of the Central Bank by violating the Exchange Control Act. Counsel Ananda Wijesekera PC with Sudath Jayasundera instructed by K. Ganshayogan, Anil Silva PC, with Rasika Balasuriya and Shan Senanayake instructed by G.G. Arul Pragasam and Rienzie Arsekularatne PC with Wasantha Batagoda appeared for the defence.