February 27, Colombo (LNW): It has been a decade since the controversial bond deal that has since been labelled as the Central Bank’s ‘Great Bond Scam’, an event that remains etched in the political history of Sri Lanka.
The deal stirred widespread outrage, leading to a change in government, with the new administration making it one of its key election promises to seek the extradition of the primary suspect, former Central Bank Governor Arjuna Mahendran.
The promise was to bring Mahendran back to Sri Lanka and hold him accountable for his involvement in the scam.
However, fresh reports emerging today suggest that Mahendran, a Singaporean citizen, will not be handed over to Sri Lanka. The Singapore Attorney General’s Department has decided to reject the extradition request put forward by the Sri Lankan Attorney General’s Department, despite years of legal pursuit.
Sources indicate that a formal written decision has been issued by the Singaporean authorities, which outlines their stance on the matter.
Legal experts familiar with the case have explained that the crux of the issue lies in the structure of the bond auction conducted by the Central Bank of Sri Lanka. The auction was overseen by an independent tender board, and Mahendran’s legal team maintains that his role was limited to the mere ‘ratification’ of the board’s decision in his capacity as Governor of the Central Bank.
In their response, the Singapore Attorney General’s Department has pointed out that if there were fraudulent activities linked to the bond auction, it would be the responsibility of the tender board members to face prosecution, not Mahendran himself.
In light of these legal arguments, the Singaporean authorities have deemed the extradition request politically motivated, leading them to decline the request for Mahendran’s return to Sri Lanka.
Meanwhile, Mahendran himself has issued a statement in response to the allegations and misinformation circulating in the media. In an exclusive statement to LNW, Mahendran vehemently denied claims from members of the current ruling party that he fled the country under the guise of attending a wedding in Singapore.
He clarified that he had returned to Sri Lanka following the wedding and had cooperated with the investigation by appearing before the commission probing the bond transactions. Mahendran refuted the notion that he had fled the country, calling the political claims against him baseless.
He further recalled that his return to Sri Lanka was widely covered on television, dispelling any myths surrounding his departure. According to Mahendran, he left Sri Lanka for Singapore with the approval of a Supreme Court bench led by Justices K.T. Chithrasiri and Prasanna Jayawardena.
He expressed that, given the circumstances, he viewed his legal battles as a case of political victimisation and stated that he is currently unable to return to Sri Lanka due to the prevailing situation.
