Finance Minster Ravi Karunanayake yesterday alleged that high-ranking officers at the Central Bank of Sri Lanka, were leaking sensitive information to the media.

 He refuted the claims by a weekend newspaper that he had proposed an ‘outsider’ as Deputy Governor of the Central Bank, saying – ‘That matter was not taken up at the meeting.’

“I would like to know who passed on this misinformation to the media,” the Finance Minister said. “This is not the first time this has happened.”

He said an inquiry was pending into the issue  - “Only five Monetary Board members were present at the meeting. I request the Speaker to immediately inquire into this matter.”

Speaker Karu Jayasuriya promised to bring the matter to the attention of the Central Bank Governor Indrajit Coomaraswamy. 

The Central Bank’s Internal Audit shows clear evidence of serious mismanagement and corruption under former Governor Arjuna Mahendran, State Finance Minister Lakshman Yapa Abeywardena said yesterday.

He was addressing the press at a conference at the Ministry.

Minister Abeywardena said a separate case would have to be filed against the former Central Bank Governor over the findings of the Internal Audit by the Central Bank’s Internal Audit Department.

“This is aside from the ongoing investigations into the bond scam,” the State Finance Minister said.

On Sunday (5), Voice against Corruption (VAC) Convener Wasantha Samarasinghe alleged the former Central Bank Governor Arjuna Mahendran had splurged Rs. 66 million belonging to the Central Bank on personal expenses.

Samarasinghe said an audit carried out by the Central Bank’s Internal Audit Department had found that Mahendran had spend Central Bank funds on 163 occasions during a span of 21 months for his own purposes.

The former Central Bank Governor hit back at the allegations on Tuesday (7) releasing a statement saying the charges against him were doctored by a group of disgruntled Central Bank employees.

‘During my period as Governor I cancelled all the tamashas and excessive foreign travel enjoyed by a few select cronies of a former Governor. This is why these persons lobbied for my removal,’ Mahendran said in his statement.

State Finance Minister Abeywardena however questioned the veracity of his statement, saying, ‘If the letter does not have his signature on, he can easily rescind responsibility for it in the future, saying he did not issue it,” he said.

“I suggest the former governor takes the time to respond to the allegations brought against him by the Internal Audit Department,’ he said, ‘Instead of making statement to the public to divert attention from the fact.’

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. 

Auditor General Gamini Wijesinghe has launched a scathing attack on the government for attempting to interfere in his official duties. 

Sri Lanka congratulated Rex Tillerson on his appointment as the new Secretary of State of  the United States.

"Congratulations to Rex Tillerson on confirmation as Secretary of State. Looking fwd to working to strengthening," Sri Lankan Foreign Minister Mangala Samaraweera tweeted, a short while ago. 

The Republican-led US Senate confirmed Rex Tillerson as President Donald Trump's secretary of state, last night. 

Senators voted 56-43 largely along party lines to approve Tillerson's nomination to be the nation's chief diplomat.

Most Senate Democrats opposed Tillerson's nomination, angering Republicans who considered the former Exxon Mobil CEO to be highly qualified for the post.

The SAITM medical students can register at the Sri Lanka Medical Council if they have completed the MBBS degree, Court of Appeals decided today.

The decision was announced by Court of Appeals President Vijith Malalgoda and Judge S. Thurairajah at the end of the hearing of the petition filed by a SAITM student.

The court observed that according to the Medical Ordinance, the SLMC has to accept the student since SAITM has been gazetted as a degree awarding institution by the then Higher Education Minister in 2011. This notification has not been challenged thereafter, the court observed. According to the UGC Act, this has been done according to the Minister's powers and if the SLMC rejects registration, it will be overriding the Minister's power, the court said.

Indian - American industrialist Shalabah 'Shalli' Kumar, an industrialist who played an important role in mobilizing Hindu support for Donald Trump, is expected to visit Sri Lanka in near future.

Shalabh "Shalli" Kumar, who is founder and president of Republican Hindu Coalition (RHC), played a key role in organising the "Aab Ki baar Trump Sarkar" ad campaign.

He was also appointed to the Transition Finance and Inauguration committee before the inauguration of President Trump.

Maximum retail prices on five essential commodities were imposed by Consumer Affairs Authority.

Thus, the maximum retail price for a kilogram of Mysore dhal has been set at 159 rupees.

The maximum retail price of a kilogram of Green Gram is 205 rupees.

White sugar at maximum price of 93 rupees per kilo while a kilogram of potatoes can be sold at 115 rupees.

According to Consumer Affairs Authority a kilogram of Sprats imported from Thailand can be sold at 490 rupees and imported Dubai sprats can be sold at 405 rupees. 

According to Ministry of Finance Sri Lanka’s total debt stock has increased by 233% to Rs.7,391 billion during the period from 2005 to 2014.

According to Finance Minister Ravi Karunanayake, Sri Lanka is embroiled in a gigantic debt trap.

The main reason is that the loans obtained by the previous regime for infrastructure development has not brought any returns on its investments.

Before launching mega projects of ports, airports and expressways, there were unsolicited proposals to build the Hambantota Port, the Mattala Airport and southern expressways which could be easily carried out Minister added.

Further the national revenue and the export earnings constantly came down since 2011 up to year 2014.

Issuing a statement Ministry said the total debt burden of Sri Lanka in 2005 was Rs.2,222 billion and, within 5 years, it increased to Rs.4,590 billion in 2010.

The statement further said the debt servicing to be paid by Sri Lanka to foreign financiers is also increasing constantly.

The debt servicing of US$ 1,828 million paid in 2016 will be increased by more than double to US$3,992 million being the highest debt repayment to be paid by Sri Lanka in a year due to colossal borrowings by the previous government.

Although the country or its people receive no dividends from these Port and Air Port projects built on foreign loans by the previous regime, the current government has been compelled to repay installments and interest for such loans with effect from 2015 though they do run at a loss.

This debt repayment covers only the project loans and the International sovereign bond. The liability on the loan obtained from the IMF and the investment by foreigners on the treasury bills and treasury bonds is to be paid separately.