Sri Lankan Central Bank governor Ajith Nivard Cabraal told LBO the banking regulator was still investigating contributions made by Raj Rajaratnam, founder of the Galleon hedge fund, to the Tamils Rehabilitation Organisation (TRO).
A probe into violations of exchange control regulations was a separate case, he said.
The Central Bank in a separate statement said that "investigations are yet continuing in relation to the funding allegedly provided by Mr Raj Rajaratnam to the TRO.
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The statement said: "Accordingly, any reports that suggest that such investigations are concluded or that Mr Rajaratnam has been cleared of possible involvement are incorrect and misleading."
The statement was apparently referring to comments made by the central bank's investigations unit chief, D.K. Wijesuriya, to a foreign news agency that the regulator had cleared the US fund manager of funding terrorism.
The central bank in September 2006 froze the bank accounts of the TRO which was operating as a cha