Deputy Exchange Controller tells Court:

Ravi K violated Exchange Control

Sarath MALALASEKERA and Hiran H. Senewiratne

*Received US$ 3m to invest in Union Bank

*Deal arranged with Raj Rajaratnam

Ravi Karunanayake

Deputy Exchange Controller Sisira Kumara Perera giving evidence before Colombo High Court Judge Deepani Wijesundera in connection with charges against former UNP Minister Ravi Karunanayake said the former UNP Minister had received US $ Three million to his personal account from the American company Necksia.

The Deputy Exchange Controller examined by Senior State Counsel Dilipa Chamath Peiris said he had also sent a letter to Karunanayake wherein the ex-MP was given seven questions to answer in connection with the charges.

Karunanayake and two others were in possession of US $ Three million in violation of the Exchange Control Ordinance regulations. One has to obtain permission from the Central Bank of Sri Lanka to possess this amount of foreign currency.

The Deputy Controller said this foreign currency was to be used to purchase shares in Union Bank.

Examined further by the Senior State Counsel, the witness said according to the statement made by second accused in the case Linton Piyasena, the former UNP Minister was aware of this entire transaction. The Deputy Controller said according to a statement made by one Weragala, Karunanayake had made arrangements with Raj Rajaratnam to purchase shares from Union Bank through a US company.

Further proceedings were put off for today.

President’s Counsel Ananda Wijesekera, President’s Counsel Rienzi Arsacularatna, Anil Silva, with Rasika Balasuriya and Shan Senanayake instructed by G.P. Arulpragasam appeared for the defence.