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Perpetual Treasuries Limited beneficiary owner Arjun Aloysius and its Chief Executive Officer Kasun Palisena arriving at the Colombo Fort Magistrate’s Court yesterday. Picture by Rukmal Gamage

Perpetual Treasuries Limited (PTL) beneficiary owner Arjun Aloysius and its Chief Executive Officer Kasun Palisena arrested in connection with the controversial Central Bank Bond issue were yesterday ordered to be further remanded till February 16 by the Colombo Fort Magistrate’s Court.

When the two suspects were produced before Magistrate Lanka Jayaratne, the Defence Counsel appearing on behalf of the suspects made a bail application citing that the suspects cannot be charged under Public Property Act.

The Magistrate directed both defence and prosecution to file their written submissions regarding bail application within this week. The Magistrate stated that she would make an appropriate order regarding the request after perusing legal facts presented by both parties.

Filing its first B report before the Colombo Fort Magistrate’s Court regarding the Central Bank Bond issuance on February 27, 2015, the CID on February 2 named former Central Bank Governor Arjuna Mahendran, Perpetual Treasuries Limited (PTL) Chairman Arjun Aloysius, its Chief Executive Officer Kasun Palisena and the PTL as suspects in the case.

Additional Solicitor General Yasantha Kodagoda appearing for the CID informed Court that there had been a direct loss to the government following the issuance of bond on February 27, 2015.

He said the suspects can be charged under Penal Code, Public Property Act,
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Registered Stocks and Securities Ordinance and Code of Conduct for Primary Dealers for illegal insider trading.

Meanwhile, ASG Kodagoda explained that this magisterial inquiry was not solely based on the Bond Commission report but a complaint made by Central Bank Governor Indrajith Coomaraswamy.

He further said that Arjuna Mahendran can be charged for criminal breach of trust and misappropriation of public funds and two others for aiding and abetting to commit this offence.

Defence counsel Kalinga Indatissa PC appearing for the suspects informed court that the suspects cannot be charged under Public Property Act and Penal Code for criminal breach of trust and misappropriation.

“Evidence and material facts of the B report are not substantial to keep the suspects in remand custody. The exact amount of the loss had not been identified. He moved court that his clients be released on bail in terms of Bail Act,” the Defence Counsel added.

The court had issued an order directing the Controller General of Emigration and Immigration to prevent the three suspects from leaving the country.

The Fort Magistrate had also issued an order directing former Central Bank Governor Arjuna Mahendran to be appear before the CID to make a statement, before February 15.

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County sheriff’s deputies escort Isaias De Jesus Valencia, suspected of fatally shooting a Pomona police officer, to a waiting car on Saturday. County sheriff’s deputies escort Isaias De Jesus Valencia, suspected of fatally shooting a Pomona police officer, to a waiting car on Saturday. Now

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