By Anura in Trouble Over Singapore Extradition Argument
Rs. 10 Billion Scandal – Will Justice Be Served?
Interpol Warrant Ignored? The Shocking Response from Singapore
President Anura’s Big Promise—Is It Falling Apart?
Who’s Protecting Mahendran? The Extradition Drama Explained
Bond Scam Mastermind Still Free – What Happens Next?
Colombo/Singapore – A fresh controversy has emerged as the Singaporean authorities have refused to extradite former Central Bank Governor Arjuna Mahendran to Sri Lanka, citing legal constraints within their system. This development poses a major challenge for the Sri Lankan government’s ongoing investigation into the 2015 bond scam, which led to an estimated loss of Rs.10 billion.
The Sri Lankan Attorney General’s Department had formally requested Mahendran’s extradition in connection with the bond fraud that occurred under the Yahapalana government. Mahendran, a Singaporean of Sri Lankan origin, was appointed Central Bank Governor at that time.
In a continuing legal saga, the Colombo Magistrate’s Court had ordered Mahendran to appear before court on February 25, 2025, in a case filed by the Bribery Commission. Meanwhile, the Colombo Permanent Trial-at-Bar bench has already issued an Interpol warrant for his arrest.
How Did This Happen? Inside the 2015 Bond Scam
The Central Bank bond scam, which took place on February 27, 2015, involved the fraudulent issuance of government bonds under Mahendran’s tenure as governor. Perpetual Treasuries Limited, a primary dealer in the bond market owned by Mahendran’s son-in-law Arjun Aloysius, was the primary beneficiary of this issuance.
President Anura Kumara Dissanayake, during his election campaign, had promised to bring Mahendran back to Sri Lanka, making it a top priority of his government. Following his election, Foreign Affairs Minister Vijitha Herath announced that the Public Security Ministry had initiated legal proceedings based on the findings of the Presidential Commission of Inquiry and the Parliamentary Select Committee.
However, Sri Lanka’s efforts to secure Mahendran’s extradition have hit a roadblock, with Singaporean legal authorities informing their Sri Lankan counterparts that he cannot be extradited under their existing laws. Despite both nations being part of the Commonwealth, which provides extradition frameworks for fugitive criminals, Singapore remains firm on its position.
This legal and diplomatic impasse now puts President Dissanayake in a difficult position, as he faces mounting pressure to fulfill his campaign pledge of bringing Mahendran to justice. The situation raises critical questions about Sri Lanka’s ability to hold financial offenders accountable and whether further diplomatic interventions can alter the course of this high-profile case.
No supporting documents received for Sri Lanka’s extradition request of former central bank chief retorted the Singapore media
The primary reason cited by Singapore for not proceeding with the extradition has been the insufficiency of supporting documents accompanying the request. In March 2019, Singapore’s Ministry of Foreign Affairs stated that they had been working with Sri Lankan authorities since January 2019 but had not received the necessary documentation to support the extradition request.
