Tea Board tells Finance Ministry: Law doesn’t permit fund transfers

The Sri Lanka Tea Board (SLTB) has told the Finance Ministry that it is unable to transfer monies from a special fund to the ministry’s Consolidated Fund due to the legal impediments to do so.
In an August 26 (Friday) response to a letter from the Finance Ministry received on August 24, it said according to the law there was no provision to transfer the funds collected within a special fund set up under the Tea Board Act of 2010 and under Section 149 of the Constitution.
On Monday, six tea sector-related associations also strongly objected to the request from the Finance Ministry issuing a statement and urging the government to respond. It has led to public disagreement over the issue between Finance Minister Ravi Karunanayake and Plantations Minister Navin Dissanayake.
The SLTB says these laws state that the funds thus collected as special funds could not be transferred to the consolidated fund and were monies obtained from the tea exporters.
Based on the legal advice received, SLTB Chairman Rohan Pethiyagoda told the Sunday Times e-daily that they could not transfer the funds amounting to Rs.4 billion requested for by the Finance Ministry.
At present there was a collection of Rs.5.4 billion, he noted adding that these funds were to be used for promotional campaign and plans to carry out this would go ahead in October. (SD)