By The Pulseline News Desk
Former Central Bank Governor Ajith Nivard Cabraal has told the Colombo High Court Trial-at-Bar that the controversial investment in Greek government bonds was made based on a nine-point report submitted by the then Director of International Operations at the Central Bank.
Giving evidence last week in the case over an alleged Rs. 1.8 billion loss to the Government, Cabraal has reportedly denied having any intention of causing financial damage to the State, maintaining that the investment was the outcome of a collective decision by senior Central Bank officials.
He has said the rationale for investing in Greek and Irish government bonds had been explained by the Director of International Operations, and none of the officials involved had objected to the proposed investments or submitted written notes expressing opposition.
Responding to questions from defence counsel Dilan Ratnayake, PC, Cabraal has said the investments represented only 0.6% of the Central Bank’s total foreign reserves portfolio.
He has also argued that investments in gold and other assets were undertaken as measures to mitigate or recover potential losses, adding that an investment resulting in a financial loss could not, by itself, be treated as a criminal offence.
Cabraal has further maintained that the Supreme Court had previously determined that there was no criminal intent behind the investment.
He has questioned the prosecution’s decision not to summon Monetary Board members who had participated in meetings concerning the Greek bond investment, despite the case having been filed twice on the same charges.
He has also referred to provisions of the Monetary Law Act, arguing that the Central Bank Governor enjoyed legal immunity in the exercise of his official functions.
During his testimony, Cabraal has reportedly highlighted his professional qualifications and record as Central Bank Governor. He has told court that he had qualified as a chartered accountant at the age of 22 and that the Central Bank recorded profits in 2011.
He has also said Sri Lanka’s foreign reserves had increased from US$2 billion when he assumed office to US$8 billion by the time he left.
The case is being heard before a three-member Trial-at-Bar comprising High Court Judges Manoj Thalgodapitiya, who presides over the bench, Udesh Ranatunga and Buddhika Sri Ragala.
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC), which instituted the proceedings, was represented by Deputy Director Anusha Sambandaperuma.
The prosecution has alleged that the Greek bond investment had resulted in a loss of approximately Rs. 1.8 billion to the Government. Cabraal’s testimony forms part of his defence against the allegations, with the court proceedings examining the circumstances, decision-making process and responsibility surrounding the investment.
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