SriLankan airlines suffers Rs 2.1bn loss due to actions of former Treasury Sec.

SriLankan airlines suffers Rs 2.1bn loss due to actions of former Treasury Sec.

SriLankan airlines suffers Rs 2.1bn loss due to actions of former Treasury Sec.

Written by Staff Writer

28 Sep, 2018 | 8:14 pm

Colombo (News1st) – It was revealed at the Presidential Commission of Inquiry today that a decision taken by the Former Treasury Secretary resulted in SriLankan Airlines suffering a loss of Rs 2.1 Billion.

It was revealed that in 2012 Cabinet approved the infusion of 500 Million US Dollars to SriLankan Airlines. However, the Treasury Secretary at the time Dr. PB Jayasundara had insisted that Treasury Bond be issued instead of cash. The bonds were issued under strict conditions, they cannot be discounted or encashed until maturity.

However, as a result of the fluctuating interest rates, the loss caused by holding on to the bonds was Rs. 2.1 Billion. The total financial loss for that respective year was Rs 6.197 Billion Rupees.

In addition, questions were raised as to why the EPF continues to keep an investment of Rs 500 Million in the debt-ridden national carrier, despite not receiving any return for years.

Additional Solicitor General Niel Unamboowe, led evidence for the day. He appeared with Senior State Counsel Fazly Razik and State Counsel Sajith Bandara.

Are you interested in advertising on our website or video channel
Please contact us at [email protected]