CoI questions central bank chief over bond sale for the second day

The commission investigating irregularities in government bond sales is questioning the new head of the country’s central bank for the second day, as the government’s anti-corruption policy came under scrutiny.

The commission questioned Indrajith Coomaraswamy on the alleged irregularities in the issuance of treasury bonds yesterday as well. The CoI is investigating a controversial bond sale under his predecessor, Arjuna Mahendran, in February 2015.

Coomaraswamy, who was appointed by President Maithripala Sirisena on July 4 after Mahendran’s tenure ended, was questioned for nearly three hours on Tuesday by the commission, according to a Reuters witness at the commission office.

Sirisena appointed the commission after opposition lawmakers demanded an independent inquiry, charging that the controversial bond sale has lost the state more than $1 billion because of rising borrowing costs in the past two years. The central bank has dismissed the opposition’s claims. (With inputs from Reuters)