The Central Bank’s Monetary Board has decided to curtail the activities of Perpetual Treasuries, Central Bank Governor Indrajit Coomaraswamy said today.

Two internal investigations into allegations levelled against Perpetual Treasuries are ongoing, the Governor said, while the Inspector General of Police has also been notified to begin investigations.

Perpetual Treasuries, allegedly owned by former Central Bank Governor Arjuna Mahendran’s son-in-law Arjun Aloysius, is said to have made unprecedented, unlawful profit while Mahendran was at the helm.

On January 25, President Maithripala Sirisena announced he would appoint a Presidential Commission of Inquiry into the alleged bond scam at the Central Bank.

Supreme Court Judges Kankanithanthri T. Chitrasiri, Prasanna Sujeewa Jayawardena and former Deputy Auditor General Kandasamy Velupillai were appointed to the Commission on January 27. 

The move to appoint this special Presidential Commission of Inquiry comes even after the Committee on Public Enterprises (COPE) report on the controversial Bond issue was presented to Parliament in October 2016.

The COPE report held the former Central Bank Governor directly responsible for the questionable transaction, saying there was evidence he interfered and influenced the process.

COPE called for legal action against Arjuna Mahendran and others and involved and recommended the monies be recovered.