Clive Haswell, former CEO of Standard Chartered Bank (SCB) Colombo and seen as the principal ‘actor’ in the controversial hedging deals with the Ceylon Petroleum Corporation (CPC), was among those who gave evidence this week in the London Commercial High Court where SCB is claiming over $161 million as non-payment of dues by the CPC.
Sources close to the government and the SCB said proceedings in the case, which began on March 28, were likely end next week with the verdict possibly around end June/early July. Both sides have expressed equal confidence in winning the case with government sources saying that they are stoutly defending the fact that the CPC had no right to enter such a transaction. SCB says the CPC must meet its contractual obligation.
The government team and witnesses on its behalf include Senior Minister A.H.M. Fowzie, Attorney General (AG) Mohan Peiris, former AG Shibly Aziz and former CPC Chairman Ashantha de Mel.
Standard Chartered was the lead bank in the hedging deals with the CPC with the other foreign banks being Citi and Deutsche, both of whom have filed separate cases against the Sri Lankan government. Sources close to both parties say the to-and-fro action between the banks and the government may take at least six to eight months . |
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