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SriLankan doesn’t possess manual for foreign loans, other financial services
SriLankan Airlines (SriLankan) doesn’t possess a manual to obtain foreign loans and other financial services, in spite of the many loans and financial services it obtained from various sources, the Commission of Inquiry (CoI) probing allegations of large scale fraud and malpractices at SriLankan, SriLankan Catering (SL Catering) and Mihin Lanka (Mihin), was told this week.
SriLankan Head of Financial Management, Yasantha Dissanayake, in his evidence before the CoI, declared that the Government procurement manual, too, did not include instructions in this regard. He had checked this with the Auditor General.
When retired Additional Solicitor General Neil Unamboowe P.C. asked Mr Dissanayake how SriLankan was able to maintain transparency and accountability without a manual dictating the terms and guidelines, the latter responded bluntly, that all transactions were accounted for. “The Board of Directors approved everything and we just followed instructions,” he said.
Mr. Unamboowe asked Mr Dissanayake what steps and procedures SriLankan followed when they obtained loans and other financial services.
“This varies from transaction to transaction, and we try to get the best terms for SriLankan,” Mr. Dissanayake answered.
The US$ 175 million loan from Mashreq Bank in 2012, is one such instance where questions were raised over the manner in which it was procured. This loan was taken to finance a severe cash shortage SriLankan was facing. This happened after former Secretary to the Treasury P.B. Jayasundara had prevented SriLankan from encashing the Treasury Bonds issued as capital injections.
Mr Dissanayake said the Mashreq Bank loan was covered by a Government guarantee.
SriLankan had aircraft transactions totaling Rs. 146.1 billion, despite having assets valued at only Rs 89.4 billion.
With the CoI entering the final phase of its sittings, Mr. Dissanayake’s will appear before the CoI next week.
Mr. Unamboowe remarked that the prosecuting team had around 6,000 pages submitted by Mr. Dissanayake to go through over the weekend, before his next appearance.