Bond Scam Culprits Up Against CJ's Service Extension
Colombo, Sri Lanka – A political storm is brewing as allegations surface that several high-profile politicians are actively lobbying against the service extension of Chief Justice Padman Surasena. Among those implicated are former Finance Minister Ravi Karunarathna, Sujeewa Senasinghe, Dayasiri Jayasekara, and former President Ranil Wickremesinghe. Political observers note that these figures have compelling reasons to oppose the extension, as the Chief Justice previously ordered investigations into payments received from Perpetual Treasuries—payments that reportedly include cheques made out to Sujeewa Senasinghe.
The Bond Scam: A Financial Catastrophe
The Central Bank of Sri Lanka bond scandal of 2015 stands as one of the most damaging financial controversies in the country's modern history. The scandal involved the controversial issuance of government bonds, with losses estimated at approximately LKR 11.14 billion (roughly US$72 million) to the state .
At the center of the controversy was former Central Bank Governor Arjuna Mahendran, who was appointed to his position in January 2015 by then-Prime Minister Ranil Wickremesinghe . Mahendran stood accused of providing insider information to Perpetual Treasuries, a primary dealer company that was run by his son-in-law, Arjun Aloysius . This conflict of interest allowed the firm to unfairly profit from bond auctions while the government incurred massive losses .
Investigations and Accountability
The scandal triggered multiple investigations. In October 2016, the Committee on Public Enterprises (COPE) recommended legal action against Mahendran and other officials involved in the controversial bond deals . COPE Chairman Sunil Handunetti presented evidence that raised "reasonable doubt" that Mahendran should be held directly responsible for the transactions . The committee further recommended that action be taken to examine and recover any losses to the state and central bank .
Prime Minister Wickremesinghe responded by stating that the government would respect the report and proposed sending it to the Attorney General for further action . However, critics noted that this was merely procedural and questioned whether real accountability would follow.
In January 2017, President Maithripala Sirisena appointed a three-member Presidential Commission of Inquiry to investigate the bond scam . The commission found evidence of misconduct and recommended criminal charges . Notably, Prime Minister Wickremesinghe became the first prime minister in Sri Lankan history to appear before a special commission of inquiry appointed by a president, testifying in November 2017 .
President Sirisena himself called for an independent probe, stating at a public rally that "politicians should not interfere in the probe" . The investigation led to an international arrest warrant being issued for Mahendran, who fled to Singapore. Efforts to extradite him, however, have proven unsuccessful .
Violence in Parliament
The bond scam controversy reached a dramatic peak in January 2018. As Prime Minister Wickremesinghe read a statement to Parliament about the Treasury bond scam, opposition legislators launched a protest, demanding that the speaker divulge details from the presidential commission's report . The situation quickly turned violent when an object was hurled at the prime minister. Speaker Karu Jayasuriya was forced to suspend sittings for ten minutes. When proceedings resumed, a fist fight broke out between opposition and government legislators .
Deputy Minister Harsha De Silva tweeted: "I am told that never in history had there been a brawl in the Chamber like the one just now" . Kavinda Jayawardena, a parliamentarian from the ruling United National Party, was taken to the Parliament medical center after sustaining injuries . The unprecedented violence highlighted just how politically charged the bond scandal had become.
The Politicians Under Scrutiny
Ranil Wickremesinghe faces the greatest political and legal exposure. As the Prime Minister who appointed Arjuna Mahendran as Central Bank governor, he has been asked to explain what he knew and when . His appearance before the Presidential Commission was a historic moment that placed him in an uncomfortable position. The opposition has consistently questioned whether the prime minister was aware of the scam and whether he bears responsibility for the losses .
Sujeewa Senasinghe is alleged to have received cheques from Perpetual Treasuries, the company at the heart of the scandal. While testifying before the Presidential Commission, Senasinghe was questioned about these payments. Sources indicate that the Chief Justice's previous orders to investigate these payments have made Senasinghe nervous about what further scrutiny might uncover.
Ravi Karunarathna, who served as Finance Minister during the period in question, has also been linked to the scandal. As the minister responsible for fiscal policy, his role in oversight of the Central Bank's operations has been questioned.
Dayasiri Jayasekara completes the group of politicians allegedly working to prevent the Chief Justice's extension. While his specific involvement has been less publicized, sources indicate he is concerned about the legal implications of continued judicial scrutiny.
The Role of Chief Justice Padman Surasena
Chief Justice Padman Surasena has been a pivotal figure in pursuing accountability for the bond scam. His previous orders to investigate payments from Perpetual Treasuries to various politicians have put him squarely in the crosshairs of those implicated. The service extension for the Chief Justice would allow him to continue overseeing cases related to the bond scandal, potentially bringing those responsible to justice.
The BASL's Responsibility
The Bar Association of Sri Lanka (BASL) is now being called upon to understand why these political figures are attempting to block the Chief Justice's service extension. The BASL has a constitutional and moral duty to ensure that judicial independence is protected and that political interference in the judiciary is resisted.
The irony is not lost on observers: those who benefited from a scandal costing the state billions are now trying to prevent a judge who might hold them accountable from serving an extended term. The BASL must recognize that this is not merely a procedural matter but a critical test of judicial independence and the rule of law in Sri Lanka.
The bond scam of 2015 remains an open wound in Sri Lanka's political and economic landscape. With billions lost to the state and those responsible fleeing jurisdiction, the pursuit of justice has been frustratingly slow. The attempt to prevent Chief Justice Surasena's service extension represents a brazen effort by powerful figures to shield themselves from accountability.
The legal community and the public must remain vigilant. The outcome of this political battle will send a strong signal about whether Sri Lanka is serious about combating corruption or whether the powerful will continue to escape .