‘Mihin Lanka owed over 1.65 billion to People’s Bank’

Mihin Lanka Pvt.Ltd. Company owes a total of USD 5 million and Rs.1.65 billion to the People’s Bank due to the loans that had not been repaid, the Presidential Commission of Inquiry into alleged malpractices on SriLankan Airlines, Mihin Lanka Pvt. Ltd. and SriLankan Catering was told by the Assistant General Manager (Corporate Banking) of the bank Kumari Nayana Senaratne yesterday.

The loan of Rs.1.65 billion was issued by the bank in 2015 on a request made by the company for them to settle the cost for fuel to the Ceylon Petroleum Corporation. This loan had been issued on a Letter of Comfort (LoC) issued by the Central Bank of Sri Lanka as security. However, the witness told the Commission that by January 31, 2018, an amount of Rs. 468.9 million had been paid as interest by the company.

The other two loans, USD 2.5 million each were issued in May and December in 2016 on separate LoCs as securities. For these loans,only the interest had been paid so far. Accordingly, USD 201,030.02 and USD 143,819.08 had been paid respectively by the company by January 31, this year. 

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