Dr. P.B. Jayasundara

Powerful Finance Ministry and Treasury Secretary Dr. P.B. Jayasundara this week stepped down from all public offices including the post of Chairman SriLankan Airlines bidding farewell to senior Finance Ministry officials at a gala reception held at the BMICH on Tuesday.

A senior official of the Ministry told The Sunday Times FT that Dr. Jayasundara told the gathering in Colombo which included Minister of State for Finance Ranjith Siyambalapitiya, that he will be taking some rest at home reading books before taking up new assignments. He also thanked Ministry officials for their assistance extended to him during his tenure. He pointed out that the Development plan prepared by the ministry was not properly implemented since 1994 but noted that positive results of this plan could be expected by 2010 as it was being systematically implemented during the past three years. Chairman Bank of Ceylon Gamini Wickremasinghe proposed the vote of thanks.

Dr Jayasundera ends a near 18-year career in the public service first being seconded to the Finance Minister as an advisor (from the Central Bank where he was a senior economist) in or around 1990 when veteran eran public servant R. Paskaralingam held sway as the all-powerful Treasury Secretary. During that assignment he was heavily involved in budget-making and after Chandrika Kumaratunga swept to power at presidential elections, was made a Deputy Secretary, Treasury with A.S. Jayawardene holding the Secretary’s position. When Mr Jayawardene was appointed Central Bank governor, Dr Jayasundera filled the vacant position and held it until the UNP won presidential elections. During a brief spell Dr Jayasundera was out of service and did assignments for the IMF and World Bank, and then joined the Public Enterprise Reforms Commission (PERC) first as a consultant and later chairman where he was responsible for the controversial Lanka Marine Services Ltd (LMSL) privatisation. He returned to the Treasury Secretary’s position after the UNP was ousted from power.

On Monday, the Supreme Court directed Dr Jayasundara to appear in court on Wednesday (October 8) to appraise court of the positions he still held in the public service or government if any. The previous week he relinquished his official duties at the Finance Ministry handing over all responsibilities to his successor Sumith Abeysinghe, the Finance Ministry official said, declining to comment however on the appointment of Dr Jayasundara as an Advisor to the President on Finance adding that the former Treasury Secretary will not operate from the Ministry.

Yet despite resigning from the Treasury, Dr Jayasundara has continued his official assignments and on Tuesday, September 30 attended a Garment Export Industry meeting of high ranking officials and Industry heads convened to discuss GSP+ concessions and several issues confronting the apparel sector. The meeting was chaired by President Mahinda Rajapakse at Temple Trees in Colombo with the attendance of Minister G.L. Peiris.

This meeting took place soon after Dr Jayasundera’s return to the island from Iran where he held talks with Iranian oil company authorities on the possible extension of the oil credit facility granted to Sri Lanka for another three months. He was accompanied by CPC Chairman Asantha de Mel, who told the Sunday Times FT that they had not signed any agreement and there was only a discussion on this matter. The agreement will be signed later, he said .