SriLankan obtained Rs.46 bn from Treasury: PCoI told

SriLankan airlines has obtained three treasury bonds amounting to Rs.46 billion in 2012, 2013 and 2014 to help the cash-strapped national carrier, the airlines' company secretary, Dalrene Thirikumar yesterday told the Presidential Commission of Inquiry (PCoI) inquiring into irregularities at the SriLankan airlines, SriLankan Catering and Mihin Lanka.

She told the PCoI that the requirement of funds for operation purposes was submitted to the Treasury from 2009.

When asked how the Emirates (Pvt) Limited shares belonging to SriLankan were purchased by the Employees Provident Fund (EPF) in 2010, the PCoI was informed that there was no Cabinet approval to transfer the shares to EPF. It was also revealed that the Monetary Board had not authorized any such purchases by the EPF.

Ms. Thirikumar said board minutes had not specifically mentioned the transfer of shares to the Bank of Ceylon (BoC) but the documents were tabled at a board meeting.

It was earlier revealed that two Cabinet memorandums in 2010 mentioned that 43.63% of shares owned by Emirates (Pvt) Limited were to be transferred only to Bank of Ceylon or Sri Lanka Insurance but a SriLankan airlines board minute stated that these shares had been transferred to the EPF and two states banks.

Ms. Thirikumar also informed the PCoI that there were no documents pertaining to the transfer of shares to the EPF or the two State banks.

Blurb -- The PCoI was informed that there was no Cabinet approval to transfer the shares to EPF. It was also revealed that the Monetary Board had not authorized any such purchases by the EPF (Yoshitha Perera)