The Governor of the Central Bank Arjuna Mahendran has informed the Monetary Board that he will not seek an extension of his term until the Committee on Public Enterprises (COPE) has cleared his name. 

“The Governor of the Central Bank of Sri Lanka Mr Arjuna Mahendran informed the Monetary Board at its meeting held on Friday (24) that he would not be seeking re-appointment as Governor of the Central Bank of Sri Lanka when his term finishes on Thursday (30) until the Parliamentary Committee on Public Enterprises makes its findings known on issues related to the issuance of Treasury Bonds in the years 2015 and 2016,” a statement said.

Civil society groups, trade unions, opposition politicians and SLFP Ministers have called for the President not to extend the term of Sri Lanka’s central bank chief.

Mahendran, whose tenure is up for renewal at the end of June, was accused last year of leaking inside information to his son-in-law’s firm, allegedly allowing it to make millions of dollars in profits from a central bank bond auction.

A ruling party committee cleared him of direct involvement but pointed to unusual activity and called for a more thorough investigation which has yet to be held.

Mahendran, a Singapore national of Sri Lankan origin appointed as the Governor following the election victory of President Maithripala Sirisena in January 2015, has consistently maintained his innocence.