Despite demands by SLFP for the resignation of Arjuna Mahendran as Central Bank Governor over the controversial Treasury bonds issue, the government insisted that he acted according to ‘good governance.’

Sri Lanka Freedom Party members led by a number of its parliamentarians protested outside the Central Bank earlier today, demanding the resignation of the Governor of the Bank Arjuna Mahendran. The Governor is accused of being involved in insider dealings during the Treasury bond issue late last month, in which a company with connections to his son-in-law allegedly profited.

SLFP today demanded Mahendran to resign from the position as Governor of Central Bank, return to the country and face the charges against him. Mahendran, who is a citizen of Singapore, left the country amidst the controversy several days back.

During the protest, SLFP members demanded entry into the central Bank premises but they were denied access. Opposition Leader Nimal Siripala de Silva told media that they were told not to protest in the vicinity of the bank as it was a high security zone. He asked why there should be high security zones in Colombo when they were being removed even in the north.

Nevertheless, a delegation of three members led by de Silva was allowed to enter the Central Bank where they met with the Deputy Governor and demanded the Governor’s resignation. The Opposition Leader told media later that they will continue to protest for the resignation of Mahendran.

However, at a press briefing held in Colombo, Deputy Minister of Policy Planning and Economic Development Dr. Harsha de Silva stated that the Governor had taken leave pending the investigation into the incident.

He added that there is no legal provision for him to resign from his post pending inquiry. Therefore, he carried out the best available option of taking leave until the investigation is carried out, Harsha de Silva said. In doing so, he acted according to ‘good governance’ principles, the Deputy Minister said.

Dr. de Silva also reminded that under the previous government, there had been accusations against the then Central Bank Governor, but no inquiry was ever done.