The President has decided to appoint a three member committee to investigate to probe into the 30-year Treasury bond issue after allegations were made against a company which was involved in this transaction.

It was alleged that this company has connections to the son-in-law of Central Bank Governor Arjuna Mahendran.

President Sirisena has instructed the Secretary to the President to take immediate action to appoint this Committee to ascertain the facts and report on this matter.

In the event of it being established that any malpractice has taken place, the President will take strong action against any persons or officials associated with this, irrespective of their status, President Media Unit said.

The bonds were issued recently to raise emergency funds needed to carry out construction and other projects. The government earlier said that the funds were needed due to difficulties arising from financial malpractices and mismanagement of the former government.

The Central Bank stated at the initial stage that it would issue the bond to collect a billion rupees money at an annual interest ranging from 9.35 to 9.75 with a maturity period of 30 years.

It is alleged that the company in question has placed a bid for the above Treasury bonds at a higher interest rate, and later the Central Bank had increased the bond value up to 10 billion.