The long-running legal proceedings surrounding Sri Lanka's controversial Central Bank bond scandal have once again come into focus, as the Colombo Permanent High Court Trial-at-Bar has set a new hearing date in the case involving former Central Bank Governor Arjuna Mahendran.
A Case That Has Gripped the Nation
The bond scandal, which first erupted in 2015, remains one of the most significant financial fraud cases in Sri Lanka's history. The alleged irregular issuance of Treasury bonds during Mahendran's tenure as Central Bank Governor caused widespread public outrage and triggered multiple investigations, eventually leading to formal criminal charges being filed against him and co-accused parties.
The case has been before the courts for several years, marked by numerous delays and procedural developments that have tested the patience of the Sri Lankan public, who have long demanded accountability for the alleged misappropriation of public funds.
Court Orders New Date
The Colombo Permanent High Court Trial-at-Bar, a specially constituted bench established to hear complex, high-profile cases, has now directed that proceedings resume on a newly assigned date, signalling that the matter continues to move — however slowly — through the judicial process.
Arjuna Mahendran, who has been residing overseas since leaving Sri Lanka, has remained a central and controversial figure in the case. His absence from the country has been a recurring point of contention and a factor that has complicated efforts to advance the trial.
Background to the Scandal
The controversy centres on allegations that Treasury bond auctions conducted by the Central Bank of Sri Lanka in 2015 and 2016 were manipulated to favour Perpetual Treasuries Limited, a primary dealer firm linked to Mahendran's son-in-law, Arjun Aloysius. Critics argued that the transactions caused massive losses to the state and, by extension, to ordinary Sri Lankan taxpayers.
- The Presidential Commission of Inquiry, commonly known as the Bond Commission, concluded its investigation in 2017 and found that the bond auctions had been conducted in a manner that was detrimental to the public interest.
- Both Mahendran and Aloysius were recommended for criminal prosecution following the commission's findings.
- Perpetual Treasuries Limited was found to have made substantial profits through the alleged manipulation of the bond issuance process.
Public Interest Remains High
Given the scale of the alleged fraud and the seniority of those implicated, public interest in the outcome of these proceedings remains considerable. Civil society groups and opposition politicians have repeatedly called on the authorities to ensure that the case is brought to its conclusion without further undue delay.
The bond scandal is widely regarded as a watershed moment in Sri Lanka's financial governance history, raising serious questions about institutional integrity and regulatory oversight at the highest levels of the Central Bank.
As the Colombo Permanent High Court Trial-at-Bar prepares for the next round of proceedings, all eyes will be on whether the case can finally gather the momentum needed to deliver a definitive judicial verdict — one that Sri Lankans across the political spectrum have been awaiting for nearly a decade.
💬 Join the Discussion 2
See what readers are saying — and add your view.
this case is older than my marriage and still going nowhere
haha true, by the time verdict comes we all will be retired