Singapore Denies Extradition of Arjuna Mahendran in Bond Scam Case

Singaporean authorities have refused to extradite former Central Bank Governor Arjuna Mahendran to Sri Lanka, citing legal limitations within their judicial system. This decision presents a significant hurdle for the Sri Lankan government in its efforts to investigate the 2015 bond scam, which resulted in a financial loss of Rs. 10 billion.

The Sri Lankan Attorney General’s Department had formally requested Mahendran’s extradition due to his alleged involvement in the fraudulent bond issuance under the Yahapalana government. Mahendran, a Singaporean citizen of Sri Lankan origin, held the position of Central Bank Governor at the time of the incident.

Last year, the Colombo Magistrate’s Court issued a notice summoning him to appear before the court on February 25, 2025, in a case filed by the Bribery Commission. Additionally, the Colombo Permanent Trial-at-Bar bench has issued an international arrest warrant through Interpol for Mahendran in connection with the case.

The bond scam, which took place on February 27, 2015, involved the issuance of government bonds under Mahendran’s leadership. Perpetual Treasuries Limited, a primary dealer owned by Mahendran’s son-in-law Arjun Aloysius, was identified as a major beneficiary of the questionable bond transactions.

During his presidential campaign, President Anura Kumara Dissanayake pledged to bring Mahendran back to Sri Lanka as a priority for his administration. Following the election, then Cabinet spokesman and Foreign Affairs Minister Vijitha Herath confirmed that the Public Security Ministry had initiated legal investigations based on findings from the Presidential Commission of Inquiry and the Parliamentary Select Committee.

Despite Sri Lanka and Singapore both being Commonwealth nations with extradition agreements in place, a top legal source confirmed that Singaporean authorities have informed their Sri Lankan counterparts that Mahendran cannot be extradited under their domestic laws.