Is the CBSL "spineless" to act against Jehan Amaratunge? - Ravi Karunanayake

COLOMBO (News 1st) - Former Finance Minister Ravi Karunanayake has expressed his views on the decision by the People's bank to grant a Rs. 10bn loan to a company in which Jehan Amaratunge, a member of the People's bank board of directors, serves as the Executive Deputy Chairman. Karunanayake stated that when Lasantha Gunawardene (former Chairman of Lankaputhra Development Bank) granted eights loans of Rs. 100,000 each the Central Bank took prompt action against him and removed him from his position. Karunanayake questioned whether the Central Bank is "spineless" to act against this director (Jehan Amaratunge). The former minister accused the Central bank of sabotaging the economy by acting according to their whims and fancies, Karunanayake also stated that this could be because of interference by certain ministers. The MP questioned what collateral has been given to the bank for this loan and also questioned whether this loan was approved because those who requested for it knew the right people. Karunanayake also revealed that he received information regarding another Rs. 4 billion loan given to a minister that has not been classified as a non-performing loan. We will look into it. When questioned about the 10bn loan Minister Patali Champika Ranawaka (cabinet minister) and State Minister Ajith P. Perera (Member of COPE) stated that they were unaware of the details of this transaction and refused to comment on it.