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LOSS TO NATIONAL CARRIER Rs.2.1 BN

The issuing of Treasury Bonds valued at Rs.14.2 billion to SriLankan Airlines in 2012 against Parliamentary and a Cabinet decision and breaching all regulations had caused a loss of Rs. 2.1 billion to the airline.

SriLankan Airlines Chief Finance Manager Yasantha Dissanayake disclosed this in his evidence before the Presidential Commission Investigating Alleged Fraud, Corruption and misuse of Public funds and assets in the SriLankan Airlines, SriLankan Catering services and Mihin Lanka on September 28.

Cross-examined by Additional Solicitor General Neil Unamboowe PC, Yasantha Dissanayake said this exercise had caused an additional loss to the airline.

Additional Solicitor General Neil Unamboowe submitted the SriLankan Airlines annual reports for 2013-2014 and said this loss had been mentioned by SriLankan Airlines Chairman Nishantha Wickramasinghe in his message in the annual report and Yasantha Dissanayake accepted it.

Dissanayake said apart from the bonds issued in 2012, another stock of Treasury Bonds amounting to Rs. 12.6 billion had been issued to the airline in 2013.

These bonds totaling Rs. 14 billion had been issued in contravention of the Registered Stocks and Securities Ordinance No. 7 of 1937.

He said these bonds had been issued on the initiative of then Treasury Secretary Dr. P.B. Jayasundera when Parliament and Cabinet had only sanctioned the issuing of Rs.500 million.