Singapore Authorities Reject Extradition of Former Sri Lankan Central Bank Governor Arjuna Mahendran

Singaporean authorities have informed that under their legal system, there is no provision to extradite former Sri Lankan Central Bank Governor Arjuna Mahendran to Sri Lanka. This development presents a new challenge for the government in pursuing investigations into the 2015 bond scam, which resulted in a loss of LKR 10 billion.

The Sri Lankan Attorney General’s Department had previously requested Singapore to extradite Mahendran, who is accused of being involved in the controversial bond scam during the Yahapalana government. Mahendran, a Singaporean citizen of Sri Lankan origin, was appointed as the Central Bank Governor at the time.

In 2024, the Colombo Magistrate’s Court issued a notice summoning Mahendran to appear before the court on February 25, 2025, concerning a case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Additionally, an international arrest warrant has been issued through Interpol for his arrest in connection with the bond scam.

The case revolves around the mismanagement of government bond issuances in 2015, allegedly causing a loss exceeding LKR 10 billion to the Sri Lankan government. The primary beneficiary of the scam was Perpetual Treasuries Ltd., a company owned by Mahendran’s son-in-law, Arjun Aloysius.

Before the last presidential election, President Anura Kumara Dissanayake had pledged to bring Arjuna Mahendran back to Sri Lanka as a priority of his administration. Following the election, Foreign Minister Vijitha Herath stated that the Ministry of Public Security had initiated legal inquiries into the bond scam, based on findings from both the Presidential Commission of Inquiry and the Parliamentary Committee on Public Enterprises (COPE).

Challenges in Extradition

Despite Sri Lanka and Singapore having legal frameworks under the Commonwealth for extradition, Singaporean legal authorities have stated that they are unable to hand over Mahendran due to their domestic laws. Experts in international law highlight that while legal cooperation exists between Commonwealth nations, individual countries retain the discretion to deny extradition requests based on their own legal principles and policies.

Singapore has a policy of not extraditing its citizens to other countries. Although Mahendran was a Sri Lankan citizen at the time of the bond scam, he is now a Singaporean national, making extradition legally complicated. Given this, Sri Lanka is now exploring alternative legal avenues, including initiating legal proceedings against him in Singapore itself.

Political and Public Reactions

The opposition has criticized the government, claiming it has failed to fulfill its election promise of bringing Mahendran to justice. Opposition MPs argue that the government, similar to previous administrations, is protecting financial criminals.

Meanwhile, the government asserts that it is making every possible effort within the international legal framework to hold Mahendran accountable. Senior officials have stated that they are in discussions with Singaporean authorities to determine alternative legal measures.

International law experts suggest that Sri Lanka could explore cooperation with Singaporean legal institutions to prosecute Mahendran within Singapore. Another potential approach is to freeze his assets through international financial organizations and Commonwealth nations.

The Sri Lankan public continues to demand accountability for those involved in the largest financial scandal in the country’s history. Civil rights organizations emphasize that those responsible should not be allowed to escape justice, as the scam resulted in a significant loss of public funds.

As the government explores its next steps, further announcements on this issue are expected in the coming weeks.