20 May, 2022


EPF Scam: Central Bank Governor Accused Of Pussyfooting

The Central Bank’s stance on the accused perpetrators of the Employees Provident Fund (EPF) scam is been severely criticized by Central Bank whistleblowers.

Indrajit Coomaraswamy – Governor CBSL

A group of whistleblowers went on to say that the precent Governor, Indrajit Coomaraswamy and the Monetary Board should know that this was the very same institution that once had a reputation for taking a firm stand and even going to the extent of sacking wrongdoers for stealing Rs 300.

Responding to the accusation levelled against the Central Bank, the institution has yesterday said: “The Central Bank of Sri Lanka wishes to clarify its position on certain media reports that carried erroneous facts on the proceedings of the Monetary Board meeting held recently.”

“The Monetary Board had a discussion on the Report on the Examination of the Employees’ Provident Fund Transactions in Government Securities with a view to decide the suitable course of action to be followed in respect of the findings. The Monetary Board decided to commence disciplinary proceedings in terms of the internal procedures of the Central Bank of Sri Lanka against any officials of the Bank where there is evidence of wrongdoing,” the Central Bank further said in a statement.

Even though many media institutions carried stories regarding the monetary board discussion, it was Colombo Telegraph who went on to carry a detailed report.

Colombo Telegraph firmly stands by its published story.

We reported on Monday ( March 27, 2017): “At the Monetary Board meeting, Monetary Board members Nihal Fonseka and Chrishantha Perera had demanded that the officials involved are immediately interdicted and disciplinary action taken. However, Treasury Secretary Dr. R. H. S. Samaratunga and another Board member Mano Ramanathan have been non-committal. Finally Governor Indrajit Coomaraswamy had wanted to soft-peddle the issue fearing further controversy and decided to send a “show-cause” letter to the officials who have been clearly named in the report as offenders”.

Criticising the Central Bnaks’s stand a whistleblower said: “What had been suggested by the two independent board members had been that they should be immediately interdicted so that they cannot influence the disciplinary proceedings; the amount of loss has been Rs 9.5 billion and given the seriousness of the misdemeanor, Central Bank should be out of bound for them. Now any disciplinary inquiry while they are in service is a mockery like the inquiries done when Arjuna Mahendran was the Governor; no body came forward to tell the truth. Yesterday, even Deputy Governor P Samarasiri has taken an independent stand before the Commission. Central Bank interdicts officers concerned even for a lesser loss like Rs 1000. Here the loss is Rs 9.5 billion!”

“A field officer attached to a poverty alleviation project run by Central Bank had misappropriated Rs 300 from poor beneficiaries and he was immediately interdicted from service; the disciplinary inquiry led to his expulsion and he even went before the Supreme Court claiming that his FRs had been violated; Supreme Court dismissed the case on the ground that it was a crime to rob money from poor women; In another instance, a clerk in EPF attempted to misappropriate some 10000 rupees belonging to a member and he was interdicted from service, dealt with disciplinarily and expelled from service; on another occasion, the salary clerk responsible for sending salaries to bank accounts had sent Rs 5000 to his account by deducting the same from the salary of another employee. He was interdicted, disciplinary action was taken and expelled from the Bank,” another whistleblower told Colombo Telegraph.

The EPF scam which caused a loss of Rs. 9,500 Million has been officially brought to the notice of the Monetary Board by a special investigative team of the Central Bank at its meeting held on 23rd March 2017.

The Investigative Team was led by Assistant Governor Kumudhini Saravanamuttu and consisted of Pavithra Withanage and Yohan Samaratunga.

The report sets out in detail the manner in which the scam has been carried out by two officials of the Central Bank who have connived and done deals with Perpetual Treasuries linked to former Governor Arjuna Mahendran’s son-in-law Arjun Aloysius, the sources said.

According to the report, the delay which caused the massive losses to the EPF have been done directly with Perpetual Treasuries or routed through other intermediary dealers, Pan Asia Bank and DFCC Bank.

However, a clear audit trail has been left behind making it possible for the Investigative Team to trace all the transactions and to calculate the losses to the country’s main fund, the EPF, the sources added.

According to our sources, the two officials identified as being involved in the scam are assistant Governor R Jayalath and Senior officer of the EPF Saman Kumara.

Related posts:

EPF Scam Caused A Loss Of Rs. 9.5 Billion; Governor Indrajit Protects Scammers

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Latest comments

  • 20

    In this Paradise Island, if some one misappropriate Rs. 300.00 it is a crime but if some one misappropriate Rs. millions or even billions with the blessings of ‘Royalists’, that is not a crime.

    • 12

      Eagle Eye. Hold on until the Investigations are over!!
      The legal concept that the guilt of an accused person cannot be presumed and that they must be assumed to be innocent until proven otherwise.
      Seerasa, JO, Therana ,Hiroo media coolies please find out the massive billions invested overseas by the former regime and there henchmen.

    • 3

      It is a matter of disciplinary action!
      I guess you have to sell a country to call it a financial crime?
      Only in this Fxxxing Banana!

      Tax payers wake up, We need to bring in a responsible leaders to the country.

      The dumb asses in the main political parties have no resolve to clean up the system, At then end of the day working man is the loser!

      May be we should bring every single tax payer to the Galle face and show force for the government to wake up!

    • 7

      Central Bank Governor

      RE: EPF Scam: Central Bank Governor Accused Of Pussyfooting*

      The Central Bank Governor learned Pussyfooting from his boss President Maitripala Sirisena.


      To act or proceed cautiously or timidly to avoid committing oneself, like a cat circling carefuly around something it finds distasteful.

      Quit pussyfooting around and face the issue head on.

  • 7

    “Colombo Telegraph firmly stands by its published story.”

    I hope that this firmness is not in the same league as that in various stories on the UoJ.

  • 0

    Is perpetual Treasuries influnced by their Agents. What are the transactions by perpetual treasuries their agents and their relations. monatary board members and thir friends and relations bank account should be traced.. Are there foriegn players in these transcactions.

  • 0

    Are foriegn cartel influnced by LTTE destablising our economy. An international and national trace of money flow should be checked on.

  • 0

    This comment was removed by a moderator because it didn’t abide by our Comment policy.For more detail see our Comment policy https://www.colombotelegraph.com/index.php/comments-policy-2/

  • 2

    The Governor is looking after his job tenure.
    He will never get a job like this anywhere.

    Now the real story of the scam by Perpetual Treasuries is unfolding.
    What is the Prime Minister doing about it?

    Earlier it has been reported that Ranil prevented the interrogation of Shiranthi Rajapakse by the FCID.

    • 4

      It may be that it gives the Governor satisfaction that towards the end of his working life he’s in a job that is both high profile and could result in him feeling that he’s making a positive contribution to his country.

      Nothing wrong in that surely!

      “Justice”, I’m certain that it is not a job that I can perform, and I rather doubt your being able to do it. Although I say that, I think that many of your comments are intelligent and sensible, but may not be this one.

      This is a man who came from a fine background, had immense talents, and has lived a productive life. He has not sought fame – it is said that President Maithri had not even heard of him – but he had been in jobs of this status before.

      Anybody in such an important job has to be “diplomatic”. Yes, so we rightly fear that such diplomacy could result in him going easy on some issues – because he is focussed on more important things. We have to be humble enough to trust him to use his judgement and do his job.

      I don’t think that any of us – that includes you, “Justice”, – has really crossed the line yet; I’m making this positive comment about him (he may not even be keeping track of who says what, and when), because a balance of your caution and my praise is healthy!

  • 6

    What are the Saviors doing? Talking of future and youth should be shoved into garbage for now. Do justice or vacate the seats.

  • 4

    Looks like so called gentleman and professional Mr Coomaraswamy falling to the same category of the thieves , going soft on wrongdoers. Is he a spineless person bowing to the pressure from the governing politicians like the ones protecting the Ex governor or CB.

    • 4

      Buddhadasa, Buddha-Servant

      “Looks like so called gentleman and professional Mr Coomaraswamy falling to the same category of the thieves “

      When one falls into mud, dirt and shit, also gets coated in mud, dirt and shit,

  • 0

    Dr Kumarassamy is a good man, but you should understand he belongs to a certain class along with likes of Ranil and Malik, the class that was left behind by the british invaders to make sure we remain a fragmented, under developed hell hole. Dr will never betray his own class. Hence Ranil will go scot-free for the third time for a heinous crime.

  • 0

    Stop making irresponsible cheap remarks trying to damage a highly respected civil servant

    The attack on the central bank Governor by the central bank whistleblower is utterly contemptible. To suggest that this highly independent, Cambridge educated economist is soft peddling is utter nonsense. Our current Governor has an impeccable reputation for honesty and integrity. He is recognised internationally as a leading intellectual in his field of expertise.
    He returned to serve his motherland after holding superior international positions in the economic field. His last position was Director of Economics/ Finance for the commonwealth countries.
    The media should be responsible in its comments. To infer/speculate whilst there is an independent presidential legal inquiry in progress looking into all the facts is despicable. I would like to remind your readers that the new Governor is trying to pull the Central Bank into the current century with the introduction of modern security and technology to enable it to have a world class reputation and standards.
    It is unfair to attempt to damage a highly regarded public servants reputation through the media who has no right of reply unlike politicians. The media and its sources should also be aware that it is highly improper for a civil servant to act or not act on matters currently under judicial investigation. In my opinion it is irresponsible for the media and its sources to be judge and jury while an independent investigation is ongoing.

  • 0

    At least by now Indrajit Coomaraswamy would realise what it is to be a Tamil.In the final verdict,ethnicity is the moving factor.It used to be the inconsequential Tamils then; Now even folks of the calibre of Dr.I.C.are not spared!

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