Lankan court again extends travel ban on ex-Central Bank of Sri Lanka governor

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For the second time, a local court here on Monday extended a travel ban on Ajith Nivard Cabraal, former governor of the Central Bank of Sri Lanka, from traveling abroad as growing economic difficulties rock the island nation.

The Colombo Magistrate’s Court extended the travel ban until July 25, the Colombo Page news portal reported.

On April 7, the court banned Cabraal, 67, from going out. The travel ban was extended again on April 18.

Cabraal was named as a suspect in a personal complaint filed for embezzlement while serving as Governor of the Central Bank of Sri Lanka.

The complaint was brought before Colombo Additional Magistrate Harshana Kekunawala on Monday, the report added.

Cabraal was not present in court when the complaint was filed and the president’s lawyer Shavindra Fernando appeared for him. The lawyer informed the court that his client had been summoned and would appear in court the following day.

The lawyers representing the plaintiff had also asked the court to submit to the court a list of the names of the parties who were paid on January 18 this year on international sovereign bonds.

The court granted the request and ordered the Central Bank to submit a list of parties who had been paid for the sovereign bonds.

The former governor of the Southern Province, Rajith Keerthi Tennakoon, had filed this personal complaint.

The complaint alleges that during his tenure as Central Bank Governor from July 1, 2006 to January 8, 2015, Cabraal paid $6.5 million to Pakistani-born American political donor Imaad Zuberi without the Cabinet approval and is therefore liable for criminal offences. breach of trust and misuse of criminal funds.

The complaint also alleges that as governor of the Central Bank of Sri Lanka, Cabraal caused a loss of $500 million to the government of Sri Lanka through sovereign bonds maturing on January 18, 2022.

The complaint alleges that the Sri Lankan government suffered a loss of Rs. bonds, during his tenure as Governor of the Central Bank of Sri Lanka.

Cabraal, who had resisted bailout calls from the International Monetary Fund (IMF), resigned on April 3, less than seven months after his appointment. In September 2021, he replaced WD Lakshman to take over for his second term as Governor of the Central Bank.

Cabraal left office at a time when inflation in Sri Lanka was at an all-time high.

Sri Lanka is facing its worst economic crisis since gaining independence from the United Kingdom in 1948. The economic crisis has also sparked political unrest in the island nation with citizens staging nationwide street protests for weeks to long power cuts and a shortage of fuel, food and other daily essentials and demanding the ousting of President Gotabaya Rajapaksa.

A crippling shortage of foreign exchange reserves has led to long queues for fuel, cooking gas and other necessities, while power cuts and soaring food prices have deepened misery Population.

Cabraal has been widely blamed for his rigid stance against the IMF bailout for the country.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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