‘Ex-CB governor made transfers with ulterior motive’

It is fairy tale: Mahendran’s Legal Counsel:

Former CBSL Governor Arjun Mahendran has made transfers with an ulterior motive following his appointment in 2015, evidence presented at the Presidential Commission suggested yesterday.

Former CBSL Governor Mahendran’s Legal Counsel Chanaka de Silva, while objecting to the nature of evidence, said such a statement lacks credibility. It is a fairy tale meant for the gallery, he said.

De Silva said evidence is prejudicial.

A disagreement arose when Central Bank’s Human Resources Department former Director Kalyani Gunatilake was testifying at the Presidential Commission inquiring into the Treasury Bond issue yesterday.

She was questioned on the major shuffling of Central Bank Department Heads by former Governor Mahendran as soon as he took office in 2015. It was revealed that 14 Heads of Departments were transferred by then Governor Mahendran.

Additional Solicitor General Yasantha Kodagoda justifying as to why he is presenting such evidence said that his position is based on investigative material collected by investigators and on interviews he has done with former HR Director Kalyani Gunatilake.

He said the shuffling of Department Heads has affected the Treasury Bond auction on February 27, 2015.

“Mahendran to facilitate his interference with the decision making process and the practice of the Public Debt Department, had put in place an officer as the Head of the PDD, so that he could brush her aside and interfere with the decision making process,” Kodagoda said.

Objecting to the implications by Kodagoda, legal counsel Silva said that “a statement as this is meant for the gallery and the press. One must check the credibility of the statement, he said.