In the Supreme Court of the Democratic Socialist Republic of Sri Lanka In the matter of an Application under and in terms of Article 126 read with Article 17 of the Constitution.

SC FR Application No. 388/2016 K.H. Lasantha Goonewardena No. 330/08, Saman Mawatha, Lake Road, Boralasgamuwa.

Petitioner Vs.

1. Monetary Board of Sri Lanka Central Bank Building, P.O. Box 590, No. 30, Janadhipathi Mawatha, Colombo 1.

2. Ajith Nivard Cabraal Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka.

2A.Dr. P. Nandalal Weerasinghe Governor, Central Bank of Sri Lanka.

3. S.R. Attygalle Member of the Monetary Board of Sri Lanka and Secretary to the Ministry of Finance.

3A.K.M. Mahinda Siriwardana Member of the Monetary Board of Sri Lanka and Secretary to the Ministry of Finance.

4. Sanjeewa Jayawardena, PC Member of the Monetary Board of Sri Lanka.

5. Dr. Ranee Jayamaha Member of the Monetary Board of Sri Lanka.

6. Samantha Kumarasinghe Member of the Monetary Board of Sri Lanka.

6A. Anthony Nihal Fonseka Member of the Monetary Board of Sri Lanka.

All at the Office of the Monetary Board of Sri Lanka, Central Bank Building, P.O. Box 590, No. 30, Janadhipathi Mawatha, Colombo 1. 7. Director Banking Supervision Department, Central Bank of Sri Lanka, P.O. Box 590, No. 30, Janadhipathi Mawatha, Colombo 1.

8. Lankaputhra Development Bank Limited No. 80, Nawala Road, Nugegoda.

8A. Pradeshiya Sanwardhana Bank No. 933, Kandy Road, Wedamulla, Kelaniya.

9. Secretary, Monetary Board of Sri Lanka Central Bank Building, P.O. Box 590, No. 30, Janadhipathi Mawatha, Colombo 1.

10.Hon. Attorney General Attorney General’s Department, Colombo 12. Respondents Before : Murdu Fernando, PC, J.

[As Her Ladyship was then, and the present Honourable Chief Justice.] Yasantha Kodagoda, PC, J.

Shiran Gooneratne, J.

Appearance: Harsha Fernando, PC with Chamith Senanayake, Yohan Cooray and Ruwan Weerasinghe instructed by J. Talgaswattage for the Petitioner.

Rajiv Goonetilleke, DSG for the 1st to 7th, 9th, &

10th Respondents.

Argued on: 26th & 27th January 2022, 9th November 2022 and 25th January 2023.

Written Submissions tendered on: 3rd May 2021 and 21st March 2023 for the Petitioners.

26th January 2023 for the Respondents.

Judgment delivered on: 17th July, 2025

Judgment

Yasantha Kodagoda, PC, J.

Introduction and background

1. Jurisdiction – By filing this Application, the Petitioner has invoked the jurisdiction conferred on the Supreme Court by Article 126 read with Article 17 of the Constitution.

2. Principal parties to the Application – During the period immediately preceding the event that led to the filing of this Application, the Petitioner Lasantha Goonewardena had functioned as the Chairman and as a member of the Board of Directors of the 8th Respondent - Lankaputhra Development Bank Limited. In this Application, the Petitioner has impugned a decision taken in respect of him by the 7th Respondent – Director of the Bank Supervision Department of the Central Bank of Sri Lanka, which resulted in his having to cease to be the Chairman and a Director of the 8th Respondent. Subsequently, the impugned decision had been endorsed by the 1st Respondent – Monetary Board of Sri Lanka. The 2nd Respondent is the Chairman of the 1st Respondent and the Governor of the Central Bank of Sri Lanka.

3. Procedural formalities - Following this Application being supported on 16th January 2017, a differently constituted Division of this Court had by a majority decision granted leave to proceed against the Respondents on the premise that prima facie, it appeared to Court that the fundamental rights of the Petitioner guaranteed by Articles 12(1) and 14(1)(g) of the Constitution had been infringed. On three separate occasions, an application made on behalf of the Petitioner for the grant of interim relief had been refused by this Court.

4. Lankaputhra Development Bank Limited - The 8th Respondent - Lankaputhra Development Bank Limited (hereinafter sometimes referred to as “the LDBL”) is a licensed sp