Interpol gives notice for Sri Lanka’s ex-bank head

Interpol has issued a red notice for Sri Lanka’s former Central Bank Governor, who is wanted in connection with a controversial bond auction. “International police today issued a red notice for former Central Bank Governor Arjuna Mahendran related to the investigation by the police criminal investigation department of the bond sale,” police said.

Mr. Mahendran has been accused of financial links with his son-in-law Arjun Aloysius, whose firm Perpetual Treasuries purchased more than 50% of the bonds auctioned in 2015. The transaction, popularly known as the ‘bond scam’, dented the government’s image and is said to have contributed to the ruling alliance’s poor showing in the local government polls in February.

Sirisena flays Ranil

President Maithripala Sirisena has attacked Prime Minister Ranil Wickremesinghe — who had appointed Mr. Mahendran — over the scandal. In January, Mr. Sirisena said that a Commission of Inquiry held Mr. Mahendran responsible for causing a loss of LKR 11,145 million to public institutions and recommended legal action.

Mr. Mahendran, who has denied wrongdoing, stepped down from the post in June 2016. Police have said they would work closely with Interpol to find Mr. Mahendran, who has reportedly fled the country.