The fundamental rights petition over the government's controversial oil hedging agreements filed by former PERC Chairman Nihal Sri Ameresekere will be mentioned on Monday, October 19 in the Supreme Court after being postponed this week. Mr. Ameresekere filed the petition on May 25, arguing that the contracts entered into between the Ceylon Petroleum Corporation (CPC) and five banks, are 'ab initio' (illegal) because they are considered to be 'wagering contracts.'
The petition describes the hedging deals as 'gambling with the valuable foreign exchange reserves of the people of the country.' The petitioner stated that the government stands to lose approximately US$800 million if the contracts are enforced. |
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