Warrants issued for arrest of Ravi K. and PTL Directors over bond transactions

Magistrate issues warrant against 10 suspects after considering application by AG

Refuses warrant against former Superintendent of CBSL PDD, saying not enough evidence against him

Suspects face charges of criminal misappropriation, market manipulation, cheating and insider dealing

Offences punishable come under Penal Code, Offences Against Public Property Act and RSS Ordinance

By Chandani Kirinde

Colombo Fort Magistrate Ranga Dissanayake yesterday issued warrants for the arrest of former Minister Ravi Karunanayake and nine others, including all the directors of Perpetual Treasuries who are facing charges of criminal misappropriation, market manipulation, cheating and insider dealing in relation to two bond auctions held in March 2016. 

The Magistrate said that a reasonable amount of evidence has been placed before him to support the issue of a warrants against 10 of the suspects named by the Attorney General’s Department to face charges under the Penal Code, Offences Against Public Property Act and the Registered Stock and Securities Ordinance in connection with two bond auctions held on 29 and 31 March 2016. He, however, refused to issue a warrant for the arrest of former Superintendent of the Central Bank’s Public Debt Department (PDD) Buddhika Sarathchandra, one of the suspects named by the AG, saying there was insufficient evidence against him.

When the case was taken up last morning, the Magistrate sought clarification from the AG’s Department representatives on several issues prior to issuing the warrants. He was provided with the necessary information last evening following the perusal of which he issued the warrants.

Senior Deputy Solicitor General Haripriya Jayasundara told Court this week that the AG’s Department has examined the evidence contained in the Report of the Presidential Commission of Inquiry appointed to Investigate, Inquire and Report the Issuance of Treasury Bonds during the period 1 February 2015 to 31 March 2016 as well as reports of Police investigations made into a complaint lodged by the former Governor of the Central Bank of Sri Lanka (CBSL) Indrajit Coomaraswamy. 

There is reasonable suspicion that the 11 suspects named were involved in misappropriation, cheating, insider dealing and market manipulation in the two bond auctions held in March 2016.

Along with the company Perpetual Treasuries Ltd., the AG has named Ravi Karunanayake, Arjun Mahendran, Arjun Aloysius, Kasun Palisena, Geoffrey Joseph Aloysius, Ranjan Hulugalle, Muthurajah Surendran, Ajaan Gardiye Punchihewa, Indika Saman Kumara, Sagarapillai Padumanathan and Buddhika Sarathchandra as suspects. 

Former Minister Ravi Karunanayake is facing charges under the Penal Code of conspiracy by committing or abetting an offence with Perpetual Treasuries and dishonest misappropriation of property under Offences Against Public Property. 

Perpetual Treasuries and its owner Arjun Aloysius and nine others, except Mahendran and Sarathchandra, are also facing charges under 56 (A) 1 (a), the Registered Stock and Securities Ordinance for failing to comply with the provision of the Ordinance as well as acting in violation of the Code of Conduct issued for Primary Dealers by CBSL by engaging in insider dealing as well as market manipulation to win an unfair advantage at bond auctions.

Senior Sate Counsel Lakmini Girihagama and State Counsels Udara Karuntillake and Chathuri Wijesuriya appeared with Senior DSG Jayasundera for the State.