Britain earlier banned TRO as it 'liaised' with Tamil Tigers

Central Bank of Sri Lanka in a petition to Colombo High Court has requested more time to investigate accounts held by Tamil Rehabilitation Organisation (TRO) in Sri Lankan banks.

The petitioner, Intelligence Unit of the Central Bank, has alleged that the charity has close links with the Tamil Tigers.

UK charity commission

However, the Central Bank had no legal authority to freeze assets longer than for 7 days, the petition said.

The TRO on Sunday told BBC Sandeshaya that the Central Bank of Sri Lanka has ordered banks to freeze money held in their accounts.

We are not giving money to LTTE but yes we are working in LTTE-controlled areas TRO Executive Director

KP Regi, Executive Director of TRO, said their employees in Colombo were refused access to their money by bank officials last week.

The TRO official said he was not aware of the reasons for the Government to freeze nearly Rs.78 million of funds in Sri Lanka.

The TRO was removed from the list of charities in UK after an investigation that concluded it liaised with the Tamil Tigers “in determining where funds could be applied”.

The UK investigation also concluded that the TRO has failed to “account satisfactorily” of funds held by the organisation.

US investigation

The funds held by TRO have been transferred to Tamil Support Group (TSG) and the charity is functioning under the new organisation, Regi added.

All funds received in Sri Lanka were coming through “legally” via government and private banks, according to TRO.

TRO liaised with the Tamil Tigers in determining where funds could be applied UK Charity Commission

“The Central Bank has already monitored all the bank accounts and our audit reports. The parliamentary select committee also recently received these reports,” he said.

There have also been accusations that LTTE has been using its front organisations, including TRO, to raise funds.

Police in the United States last month accused the LTTE of using charities sympathetic to the rebels as a front for money-laundering and fund-raising.

The police arrested a number of people on suspicion of conspiring to buy arms for Sri Lanka's Tamil Tiger rebels.

But the TRO denies the accusations. “We are not giving money to LTTE but yes we are working in LTTE-controlled areas,” Regi told bbcsinhala.com.