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Shipping Fund loan interest waived off on Batagoda’s decision - Witness

A loan obtained from the Shipping Development Fund in April 2009 for Mihin Lanka had been settled waiving off the due interest.

This had been done on a decision taken by then Treasury’s Public Enterprises Department Director General B.N.S. Batagoda, who apparently had no authority to do it, the Presidential Commission of Inquiry on Sri Lankan Airlines (SLA) was told yesterday.

This loan of Rs. 300 million was given for Mihin Lanka to lease out an A320 aircraft from Sri Lankan Airlines. It was obtained on an agreement to pay it back with due interest within two months by the Treasury. “This money was taken as a loan by the General Treasury first and later it was given to SLA on behalf of Mihin Lanka”, Treasury’s Public Enterprises Department Director Champa Balasooriya testifying before the commission said yesterday.