December 10, Colombo (LNW): Former Governor of the Central Bank, Ajith Nivard Cabraal, has been granted conditional release in connection with the contentious Greek bond affair, while three co-accused were freed unconditionally by Colombo High Court Judge Mohammed Mihal yesterday.
The case revolves around allegations that, at a time when Greece was grappling with a severe economic crisis, senior officials at the Central Bank allegedly went ahead with the purchase of government treasury bills, reportedly resulting in losses exceeding Rs. 1.84 billion to the state. The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) had originally charged Cabraal along with former Deputy Governor Dharmasena Dheerasinghe and Assistant Governors Don Vasantha Ananda Silva and M.A. Karunaratne.
In proceedings before the Colombo High Court, the indictments against Cabraal were formally considered for withdrawal under Section 67(1) of the Bribery Act. Following a request by Cabraal and a subsequent review by the Director General with CIABOC approval under Section 67(2), the court officially withdrew the charges against him under Section 67(3).
After evaluating submissions, Judge Mihal stipulated that Cabraal could be released under specific conditions, while the remaining three defendants—Dheerasinghe, Silva, and Karunaratne—were freed without any conditions under Section 194(3) of the Code of Criminal Procedure.
The court also directed that Cabraal must pay Rs. 1,843,267,595.65 to an account designated by the Central Bank of Sri Lanka within three months. Should he fail to meet this deadline, the previously withdrawn charges will be reinstated under Section 67(5) of the Bribery Act.
The CIABOC initially filed charges in 2024, but a technical issue concerning the date of the indictments led the High Court to release the accused without formally serving the charges on May 31, 2024. The commission subsequently re-submitted the case on 21 August 2024, leading to the latest developments.
