Sri Lanka enacted draconian exchange control laws soon after creating a money printing central bank in 1951, which led to high inflation and currency shortages shortly after.
Karunanayake was charged in a case involving which involving a bringing foreign investments into the country through the banking system, but allegedly violating exchange control and money laundering rules.
The money was said to be remitted by US fund manager Raj Rajaratnam to purchase shares in a bank.