Former Central Bank Governor Ajith Nivard Cabraal acquitted in Greek Bond case

Sri Lanka’s Former Central Bank Governor Ajith Nivard Cabraal and three others were acquitted today (December 10) in a case regarding the investment in Greek bonds in 2011.

The acquittal was ordered by Colombo High Court Judge Mohamed Mihal.

The acquittal came after the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) decided to withdraw the indictment against them.

CIABOC had previously filed the case, claiming that despite Greece being in a severe economic crisis in 2011, the accused proceeded with the purchase of Greek Treasury bills. CIABOC alleged that this decision caused a loss of over Rs. 1.84 billion to the Sri Lankan government.

However, CIABOC later said in a press release that it withdrew the indictment on the condition that Mr. Cabraal pays Rs. 1,843,267,595.65 (Rs. 1.84 billion) as compensation for the loss within three months.

CIABOC also said it will re-file the indictment if this condition is not fulfilled.

The defence argued in court that the Supreme Court had already ruled the transaction lawful, as it complied with Central Bank regulations and financial reporting requirements. They said that pursuing the case again as a corruption matter was unjustified.