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Interpol issues red notice for Arjuna Mahendran over bond sale

Interpol has issued a red notice for former Central Bank Governor Arjun Mahendran who is wanted in connection with the investigation into the Treasury bond case.

Police Spokesman SP Ruwan Gunasekera told the Daily FT that the process of extraditing the former Central Bank Governor has now begun.

“The Criminal Investigations Division will be coordinating with other institutions, such as the Ministry of Foreign Affairs, in extraditing Arjun Mahendran,” SP Gunasekera said.

The former Central Bank Governor, who holds a Singaporean citizenship, fled Sri Lanka for Singapore as soon after the irregularities in the Central Bank Treasury bond transactions came to light.

Following an investigation by a Presidential Commission of Inquiry appointed to probe the Treasury bond transactions, it was found that the former Governor of the Central Bank had given an undue advantage to Perpetual Treasuries Ltd., a company owned by his son-in-law Arjun Aloysius, through insider trading.

It was estimated that a loss of Rs. 11.5 billion had incurred due to the insider trading.

Currently, both Arjun Aloysius and Perpetual Treasuries CEO Kasun Palisena are remanded in custody.

(FT)

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