Accordingly, a proper inquiry will take place into the allegations against him, pending which he will be sent on leave.

Prime minister Ranil Wickremesinghe has agreed to appoint an acting governor to look after affairs of the CB in the interim, the sources say.

The agreement came at a second round of meetings he had yesterday (18) with representatives of Citizens Power and the National Movement for Social Justice, including Pro. Sarath Werasuriya, Gamini Viyangoda, Saman Ratnapriya, Joseph Stalin and Gemunu Wijeratne.

They have said that it would be justifiable to extend Mahendran’s term only if the inquiry, to be supervised by parliament, absolves Mahendran.

The two sides had a meeting previously too, also attended by the president, who according to media, is under pressure over Wickremesinghe’s continuous defence of Mahendran.