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Acquitted / Case Dismissed on Legal Objections (2024)Mahinda Rajapaksa Administration (2005–2015) • Year: 2011
Central Bank Greek Sovereign Bond Investment Loss ($30M)
Category: FINANCIAL_MISCONDUCT • Investigating Authority: CIABOC / Supreme Court / Colombo High Court
Named Parties / Involved Entities:
Ajith Nivard Cabraal (Former CBSL Governor) • CBSL Monetary Board (2011)
Verified Allegation / Matter Summary
In April–May 2011, the Central Bank invested $30 Million of Sri Lanka's official foreign reserves in Greek government bonds shortly before the Hellenic Republic sovereign debt restructuring and private sector involvement (PSI) haircut, causing a loss of approximately $18.5 Million (Rs. 2.2 Billion).
Documented Public Financial Impact
Rs. 2.2 Billion
Judicial Proceedings & Current Legal Status
⚖ In May 2024, the Colombo High Court discharged former CBSL Governor Ajith Nivard Cabraal and co-accused following legal objections raised regarding procedural institution of CIABOC charges under the old Bribery Act without Monetary Board concurrence.
Case Timeline & Procedural Milestones
2011-04-05
CBSL Monetary Board approves investment in Greek Sovereign Bonds.
2012-03-09
Greece executes debt restructuring haircut; CBSL realizes ~60% capital loss.
2022-04-01
CIABOC files indictments in Colombo High Court.
2024-05-30
Colombo High Court discharges accused following preliminary objections.
Auditor General & Forensic Audit Citations
Auditor General highlighted improper risk assessment in purchasing junk-rated European sovereign paper with national reserve buffers.