Singapore reportedly declines extradition of former Sri Lankan Central Bank Governor

Sri Lankan media outlet Daily Mirror, citing a top source, reports that Singaporean legal authorities have informed their Sri Lankan counterparts that former Central Bank Governor Arjun Mahendran cannot be extradited under the laws of Singapore.

If confirmed, this would present a significant challenge for the Sri Lankan government in its efforts to bring Mahendran back to face charges related to the 2015 bond scam, which resulted in a Rs. 10 billion (approximately SGD 45.28 million) financial loss.

The Sri Lankan Attorney General’s Department had sought Mahendran’s extradition due to his alleged involvement in the bond fraud that occurred under the Yahapalana government.

Mahendran, a Singaporean citizen of Sri Lankan origin, was serving as the Central Bank Governor at the time of the scandal.

Last year, the Colombo Magistrate’s Court issued a notice for Mahendran to appear before the court on 25 February 2025 in connection with a case filed by the Bribery Commission.

Additionally, the Colombo Permanent Trial-at-Bar bench had previously issued an Interpol warrant for his arrest over the bond scam.

Bond scam and legal action

The case against Mahendran is linked to allegations that the bond issuance, conducted on 27 February 2015 under his leadership, was manipulated to benefit Perpetual Treasuries Limited.

This company, a primary dealer in the bond market, was owned by Mahendran’s son-in-law, Arjun Aloysius, and is said to have unduly profited from the transaction.

During the run-up to the 2024 presidential election, President Anura Kumara Dissanayake pledged to bring Mahendran back to Sri Lanka for prosecution.

Following his election, then Cabinet spokesman and Foreign Affairs Minister Vijitha Herath announced that the Public Security Ministry had begun legal proceedings, referencing the findings of both the Presidential Commission of Inquiry and the Parliamentary Select Committee.

Despite these efforts, Daily Mirror reports that a high-ranking source has confirmed Singapore’s reluctance to extradite Mahendran, citing legal constraints.

Mahendran has consistently denied the allegations against him.

In 2019, he reached out to The Online Citizen (TOC), claiming that the accusations were part of a politically motivated campaign led by then-President Maithripala Sirisena.

In an email to TOC, Mahendran stated:

“The case against me has been maliciously instigated by the outgoing President Sirisena of Sri Lanka as part of a campaign to discredit his Prime Minister Ranil Wickremesinghe. To date, there has been absolutely no evidence brought forward to prove any malfeasance by me in this case.”

Sri Lanka and Singapore are both Commonwealth members, and extradition between them is theoretically possible under Commonwealth extradition arrangements.

However, the reported refusal by Singapore suggests that either legal technicalities or political considerations are complicating the process.

TOC has written to the Ministry of Foreign Affairs about the matter but has not received a response.

With this potential setback, the Sri Lankan government now faces the challenge of exploring alternative legal avenues or diplomatic negotiations to bring Mahendran back for prosecution.