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Central Bank Bond Issue - Govt will act on committee recommendations

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President Maithripala Sirisena promised that the Government will act on the recommendations on the committee appointed to investigate possible wrongdoing in the controversial issuance of Central Bank Bonds. 

Responding to a question at the breakfast meeting with media heads at President's House this morning, he said that now that the report of the inquiring committee has been tabled in Parliament necessary action will be taken.

The committee absolved Governor Arjuna Mahendran of 'direct involvement' raising questions whether there was indirect involvement as is usually the case in controversies in speculative ventures.  The committee noted that the behavior of Perpetual Capital, owned by Mahendran's son-in-law Arjun Aloysius, was unusual.  The committee also recommended that the Bank of Ceylon's involvement in the matter warrants investigation.  Perpetual borrowed heavily from Bank of Ceylon to invest in Central Bank bonds.   

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