Sri Lanka- Greek Bond Case Withdrawn: Ex-Central Bank Governor Ajith Nivard Cabraal Acquitted
By Lions Roar News Financial Desk
COLOMBO, SRI LANKA – In a significant development that closes a long-running legal saga, former Governor of the Central Bank of Sri Lanka (CBSL), Ajith Nivard Cabraal, and three other defendants were acquitted and discharged by the Colombo High Court yesterday (December 10, 2025) in the controversial Greek bond investment case.
The order was issued by Colombo High Court Judge Mohamed Mihal after the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) unexpectedly informed the court of its decision to withdraw the indictments filed against the four accused.
The case centered on allegations that the defendants caused a substantial loss to the government by investing public funds in Greek Treasury bonds in 2011 (some reports cite 2012), at a time when Greece was engulfed in a severe economic crisis. The prosecution had claimed the investment led to a loss exceeding Rs. 1.84 billion (approximately 1,843,267,595/-).
💰 The Condition for Withdrawal
The CIABOC’s decision to withdraw the charges against the former Central Bank Governor came with a major condition, as revealed in court submissions.
The Commission stipulated that Mr. Cabraal must reimburse the full amount of the alleged loss, Rs. 1,843,267,595.65, into the account of the Central Bank of Sri Lanka within three months from the date of the withdrawal.
Crucially, the CIABOC informed the court that new indictments would be filed against Mr. Cabraal should he fail to meet this reimbursement condition.
While Mr. Cabraal’s discharge was made subject to this financial condition, the High Court ordered the unconditional acquittal and release of the other three defendants in the case: former Deputy Governor Dharmasena Dheerasinghe and Assistant Governors Don Wasantha Ananda Silva and M.A. Karunaratne.
⚖️ Defence Submissions and Legal Context
The withdrawal of the charges follows a series of written submissions and preliminary objections made by the defence counsel.
Representing Mr. Cabraal, President’s Counsel Dilan Ratnayake, along with Nalin Ladduhettiarachchi, had previously argued that the case was unjustifiable, particularly citing a determination by the Supreme Court. They noted that the transaction involving the Greek bonds was, in fact, legal and executed in accordance with the regulations and financial reporting rules of the Central Bank.
The case had previously faced setbacks and technical challenges for the prosecution. An earlier High Court order had released the defendants after upholding a preliminary objection regarding the proper appointment of the CIABOC Director General under the new anti-corruption law. However, the CIABOC subsequently re-filed the indictments. The latest withdrawal puts a definitive, albeit conditional, end to the court proceedings against the former Governor.
The investment in Greek sovereign debt was made at a time of high risk in the Eurozone, drawing intense scrutiny and political controversy in Sri Lanka. The move by the CIABOC to withdraw the criminal charges, while seeking the full recovery of the alleged financial loss, shifts the focus from a determination of criminal corruption to the issue of state financial accountability.
The court order marks a pivotal moment in one of Sri Lanka’s most high-profile corruption cases against a former senior public official. The deadline for Mr. Cabraal to deposit the substantial sum of Rs. 1.84 billion will be closely monitored by the financial sector and the public.
