Indictment Filed Against Cabraal Over Greek Bond Case Breach

COLOMBO (News 1st); An indictment has been filed against former Central Bank Governor Ajith Nivard Cabraal for allegedly violating conditions imposed in connection with the Greek bond case.

The charges were presented before a Permanent High Court Trial-at-Bar appointed by the Chief Justice to hear the case.

The three-member bench comprises justices Manoj Thalgodapitiya, Udesh Ranatunga, and Buddhika Sri Ragala.

The legal action follows Cabraal’s failure to pay more than Rs. 1.84 billion, which he was ordered to reimburse under the conditions set in the case.

The payment, linked to losses incurred by the government, has not yet been made.

The Commission to Investigate Allegations of Bribery or Corruption launched an inquiry into the matter, focusing on the purchase of Greek government bonds at a time when Greece was facing a severe economic crisis. It is alleged that the transaction, carried out despite awareness of the crisis, resulted in a loss exceeding Rs. 1.84 billion to the government.

Charges were initially filed against four individuals: former Central Bank Governor Ajith Nivard Cabraal, former Deputy Governor Dharmasena Dheerasinghe, and Assistant Governors Don Wasantha Ananda Silva and M.A. Karunaratne.

On December 10 last year, the Colombo High Court ordered the conditional release of Cabraal, while the other three accused were released unconditionally.

Under the conditions of his release, Cabraal was required to credit the Central Bank of Sri Lanka with the full amount of the loss, over Rs. 1.84 Billion, within three months. That deadline expired on March 10.

The Bribery Commission had earlier requested the appointment of a Permanent High Court Trial-at-Bar to hear the case.