Charged / Trial in Colombo High Court Trial-at-BarYahapalana Government (2015–2019) • Year: 2015

Central Bank Treasury Bond Auctions Scandal (2015–2016)

Category: FINANCIAL_MISCONDUCT • Investigating Authority: Presidential Commission of Inquiry (PCoI) / CID / Attorney General's Department

Named Parties / Involved Entities:

Arjuna Mahendran (Former CBSL Governor) • Arjun Aloysius (Perpetual Treasuries Ltd) • Kasun Palisena • Perpetual Treasuries Limited

Verified Allegation / Matter Summary

Alleged insider information leaking and manipulation of the 30-year Treasury bond auction on February 27, 2015, where the advertised Rs. 1 Billion auction was unexpectedly expanded to accept Rs. 10.05 Billion at sharply elevated yield rates, with over 80% allotted directly or indirectly to primary dealer Perpetual Treasuries Limited.

Documented Public Financial Impact

Rs. 11.14 Billion

Per National Audit / Forensic Reports

Judicial Proceedings & Current Legal Status

⚖ Arjuna Mahendran remains subject to an INTERPOL Red Notice and Singapore extradition proceedings. Arjun Aloysius and Kasun Palisena indicted under the Public Property Act in High Court Trial-at-Bar (Case No. HCB 125/2019).

Case Timeline & Procedural Milestones

2015-02-27

Controversial 30-year Treasury bond auction conducted by CBSL.

2016-10-28

COPE Chairman Sunil Handunnetti presents landmark COPE inquiry report recommending legal action.

2017-12-30

Presidential Commission of Inquiry hands over final report to President Sirisena.

2018-02-04

CID arrests Arjun Aloysius and Kasun Palisena under Public Property Act.

2019-06-07

Attorney General files 232-count indictment before Permanent High Court Trial-at-Bar.

Auditor General & Forensic Audit Citations

Special Forensic Audit commissioned by CBSL (KPMG/BDO 2019) confirmed artificial yield spikes and irregular secondary market transfers to EPF portfolios.