Colombo HC issues notice on Ravi Karunanayake

Sandasen Marasinghe

The Colombo High Court issued notice on UNP Parliamentarian Ravi Karunanayake to appear before Court on July 13, 2009 in connection with charges indicted under the Exchange Control Act.

Colombo High Court Judge Deepali Wijesundara issued notice after the Attorney General filed indictment against Karunanayake for aiding and abetting Nexia Corporate Consultancy Pvt Ltd (NCCPL) of Park Road, Colombo 05 to withhold US$ 3 million in the Kirulapona Branch of the Standard Chartered Bank without Central Bank permission.

The Attorney General filed indictment before the Colombo High Court against Nexia Corporate Consultance Pvt Ltd, its consultant Lincoln Piyasena and Ravi Karunanayake.

According to the indictment, NCCPL had received US$ 3 million in December 2006 and January 2007 from non resident Galen International Master Fund and also non resident Raj Rajaratnam and withholding the money in Standard Chartered Bank on behalf of them violating the provisions of the Exchange Control Act. Both Galen International Master Fund and Raj Rajaratnam are from USA.

The US$ 3 million (Rs. 321 million) was received and withheld by the NCCPL allegedly for purchase of shares in the Union Bank of Colombo without Central Bank's permission.