Violation of Exchange Control Act:

Ravi K indicted

Sandasen MARASINGHE

United National Party (UNP) Parliamentarian Ravi Karunanayake was served indictment before the Colombo High Court yesterday for violating provisions of the Exchange Control Act.

Colombo High Court Judge Deepali Wijesundara ordered to impound the passports of Ravi Karunanayake and of two other accused. The Court also granted them Rs. 100,000 each in cash bail and two sureties each of Rs. 1 million.

President’s Counsel Faisz Musthapa appearing for Karunanayake requested before the Court not to impound Karunanayake’s passport as he was a leading politician and public figure but Senior State Counsel Dileepa Pieris objected. The Court observed that these were the bail conditions that applied to all and refused the request by the defence counsel.

The Court also ordered Karunanayake to submit his passport on Monday to Court when the defence submitted that he had not brought his passport to Court yesterday. The Attorney General filed indictment against Nexia Corporate Consultants its consultant Lincoln Piyasena and Ravi Karunanayake. Ravi Karunanayake was charged for aiding and abetting Nexia Corporate Consultants of Park Road, Colombo 5 to withhold US$ three million.

The money in the Kirulapone Branch of the Standard Chartered Bank was withheld between 2006 and 2007 without the permission of the Central Bank.

According to the indictment Nexia had received US$ three million in December 2006 and January 2007 from non resident Galleon International Master Fund and also non resident Raj Rajaratnam and withholding the money in Standard Chartered Bank on behalf of them violating provisions of the Exchange Control Act.

Both Galleon International Master Fund and Raj Rajaratnam were from the USA.

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

Administrative Manager of Nexia Corporate Consultants Ranjith de Silva was produced before Court on behalf of the company. Senior State Counsel Dileepa Pieris appeared for the prosecution.

Attorneys Ananda Weerasooriya and Sudath Jayasundara appeared for the first accused, Attorney Anil Silva appeared for the second accused while President’s Counsels M.L.M. Ameen and Faisz Musthapa appeared for the third accused.