MOSCOW (Sputnik) — Sri Lanka's Foreign Minister Ravi Karunanayake has resigned amid a scandal involving financial fraud while renting an apartment, local media reported Thursday.
Karunanayake, who held the post of finance minister before his appointment as foreign minister, was staying at an apartment paid by a person suspected of the Central Bank bond scam, which led to serious conflict of interests and ethical problems, the publication said.
The minister, on his part, has denied any violations, adding that his family was engaged in the deal and that he was not aware of the details or the parties involved.
According to reports, the suspected person is Arjun Aloysius, the son-in-law of Sri Lanka’s former Central Bank chief Arjuna Mahendran. In 2015, Perpetual Treasuries Ltd, a subsidiary of a company owned by Aloysius, illegally purchased Central Bank bonds, which lost the state more than $1 billion.
