Petition filed seeking to prevent Cabraal from taking up post of CBSL Governor

Former Central Province Governor Ranjith Keerthi Tennakoon has filed a Writ Petition in the Court of Appeal seeking an order to prevent newly appointed Central Bank (CB) Governor Ajith Nivard Cabraal from taking up his post. 

Eight respondents have been cited in the petition, which was filed with the Court of Appeal via email today. Besides Mr Cabraal, the respondents include the Attorney General (AG), Inspector General of Police (IGP), Secretary to the President and Minister of Finance. 

The petitioner argues that Mr Cabraal cannot assume duties as CBSL Governor given that the report of the Commission of Inquiry (CoI)  appointed by former President Maithripala Sirisena to probe the issuance of Treasury bonds and the Forensic Audit report carried out into Treasury bond issues had noted there were serious conflicts of interest concerning Mr Cabraal during his previous tenure as Central Bank Governor from 2006 to 2015. 

The petition points out that the forensic report notes that during his tenure as head of CBSL, several of Mr Cabraal's close relatives had been appointed to the chief positions in banks under the purview of CBSL. 

It was also mentioned in the CoI's Report and as noted during the public domain searches that the relatives of Ajith Nivard Cabraal held influential positions in Primary Dealers and/or related company of Primary Dealers, during his 
tenure as a Governor of the CBSL, the petition further notes. 

The petitioner states that the aforesaid banks and financial institutes were the ones who bid the Treasury bonds issued by the CBSL when Mr Cabraal was head of the CBSL.

The Petitioner pleads that whilst Mr Cabraal was acting as the Governor of the CBSL and when members of his family tree acted either directors or the shareholders of the aforesaid financial institutes which were also 
acting as the primary dealers of equity market, Sri Lanka had incurred a loss sum of Rs. 10.4 – 10.6 Billion from year 2005 to 2015 as computed in the Forensic Audit Report. 

The petitioner has asked for a Writ of Mandamus to compel the AG and the IGP to file a separate indictment against Mr Cabraal considering evidence available within the Forensic Audit Report.