Sri Lanka's central bank chief quizzed by anti-graft panel

Sri Lanka's top banker was today questioned by an anti-graft commission over a controversial bond issue, becoming the first high ranking official of the new Maithripala Sirisena government to be quizzed in a corruption case.
Governor of Central Bank of Sri Lanka Arjuna Mahendran was questioned by the Commission to Investigate Bribery or Corruption.
Officials said he was questioned over five hours on the controversial bond issue of the Central Bank late February.
Mahendran became the first high ranking official of the new Sri Lankan government to be quizzed by the Bribery Commission.
On February 27, it was alleged that Mahendran's son in law's primary financial dealer firm had benefited from inside information on Central Bank's decision to sell 10 billion rupees worth of bonds at a higher rate of interest in place of the original decision to sell just 1 billion rupees bonds at a lower interest rate.

The Opposition lodged a complaint at the bribery commission following Prime Minister Ranil Wickremesinghe's action to appoint a three-member panel to probe allegations of fraud.

Wickremesinghe in parliament denied any wrongdoing and pledged willingness to appoint a select committee on the issue.
The issue surfaced as a major public embarrassment for both Sirisena and Wickremesinghe with their leveling of allegations against the former President Mahinda Rajapaksa's government.
Many top officials of the previous Rajapaksa government are facing probe by the Bribery Commission.