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Greek bond case refiled against former CBSL Governor Cabraal

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A case has been refiled in the Colombo High Court against former Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabraal over his alleged failure to comply with a court-imposed condition requiring the deposit of Rs. 100 million within a three-month period.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has reactivated the case under Section 67(5) of the Anti-Corruption Act, citing non-compliance with the condition imposed in relation to the controversial Greek bond matter.

Earlier, the CIABOC had sought permission to withdraw the case on the basis that the required deposit would be made within the stipulated timeframe. However, authorities stated that the failure to fulfil that condition resulted in the case being reinstated before the High Court.

The case relates to allegations that Sri Lanka incurred losses exceeding Rs. 1.84 billion through investments in Greek government bonds in 2012, at a time when Greece was facing a deep financial and sovereign debt crisis.

Investigators have previously alleged that the bond purchases exposed Sri Lanka to significant financial risk despite warnings surrounding the instability of the Greek economy during that period.

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