The Central Bank will seek legal advice on Treasury Chief Dr. P. B. Jayasundera’s continued presence on the Monetary Board in view of the recent criticism by the Supreme Court of his role on the sale of Lanka Marine Services Limited (LMSL) to John Keells Holdings, well informed sources said.

The lawyers for petitioner, Vasudeva Nanayakkara, recently wrote to Central Bank Governor Ajith Nivrad Cabraal calling for Jayasundera’s removal as anyone found guilty by a court of law couldn’t remain on the Monetary Board.

"We are awaiting a response from the Central Bank," Nanayakkara told The Sunday Island. He reiterated his decision to move the Supreme Court against any move to shield the influential official.

The Governor politely declined to comment on the issue.

The President’s Media Division last week released a photograph of Jayasundera with President Mahinda

Rajapaksa and Ambassador Karunathilake Amunugama, with several Chinese officials in Beijing on the occasion of the Olympic Games.

On the president’s delegation is Sajin Vass Gunawardene, the former head of ill-fated budget carrier Mihin Air.

Wijedasa Rajapakshe,MP, former Chairman of COPE, Parliament’s Committee on Public Enterprise, expressed confidence the government would decide on Jayasundera continuance in office before the Supreme Court delivers its ruling on the privatization of the Sri Lanka Insurance Corporation.

Hard on the heels of the LMSL controversy, the government has appointed Udayasri Kariyawasam as Chairman of the Sri Lanka Insurance Board. Kariyawasam, who had to quit the CEB recently following a dispute with unions spearheaded by its engineers, had been investigated by the Presidential Investigation Unit.

Following the investigation which focused on his tenure as Chairman of the Bank of Ceylon, the President has been advised against appointing Kariyasawam to head any government institution. This report has cited several reasons for the recommendation. Kariyawasam has repeatedly denied all allegations against him.