The Sunday Leader

Hedging Deal: MR Withdrew Rs. 400 Million From CB

By Ranjith Gunawardena

Former President Mahinda Rajapaksa withdrew over Rs. 400 million from the Central Bank (CB) for the controversial hedging deal, the Auditor General’s Department has found.

A new report by the Auditor General’s Department found that the Rajapaksa led administration withdrew money for the hedging deal without Monetary Board approval.

Ceylon Petroleum Corporation (CPC), which imported some 26 million barrels of oil at a cost of $2 billion in 2007, needed to hedge its purchases of crude oil and refined products on the international market.

It was exposed to the record oil rally of 2008, when oil hit an all-time high above $147 a barrel for U.S. crude in July, before crashing to less than $40 a barrel in December of that year.

CPC had later refused to make hedging payments to five banks including Standard Chartered, Citigroup and Deutsche Bank.

It was reported last year that the Central Bank had paid a sum of Rs. 379 million up to December 31, 2014 for the services obtained from foreign lawyers who had appeared in the arbitration proceedings initiated by Deutsche Bank against the government.

In 2012 CPC lost an appeal against a London court ruling which ordered it to pay nearly $162 million plus interest for non-payment of dues to Standard Chartered Bank linked to hedging deals.

8 Comments for “Hedging Deal: MR Withdrew Rs. 400 Million From CB”

  1. shantha

    Uneducated uncultured finance minister?

  2. kudson

    time to put this crooked rat in jail

  3. Mr Rajano please accept the frauds and corruption’s that has happens during your unlawful thuggish regime time , I am an neutral and independent person , all the politicians are not clean and white as milk even in this present government , but should not to forget you all are playing with the country’s state assets belongs to every citizen in the country . you did lots to the country with the help of others , mainly the terror conflict but don’t use it as advantage , by telling all times . Even one of the past president Mr Premadasa did lots to the country that is mostly for the the poor and rural people , have to mentioned that was great . He didn’t construct high ways towers , jogging paths and unwanted construction’s and many more things . Firstly the country needs the living standards of the people , and then the other things . You don’t have to show to the world the beautifullnes while having problems and poor living standards of the people . What you did good stays with you and the bad has to face This is what you call ditta dhamma wedaniyathwaya. Face it as a real man if you involved and let the justice be done . Now the time for you to rest and attend to religious affairs , not to go to temples around and make gatherings and rouse innocent people against the present government . Live in peace and harmony .

  4. Lima

    THIS WILD BITCH JARAPAKSA ROBBER / KILLER DESERVES DEATH SENTENCE ALONG WITH HIS JARAPAKSA FAMILY CLAN. SOON DELIVERY THE DEATH SENTENCE. FAILING TO DO SO PUBLIC IS WAITING TO TAKE THE LAW AND THEY WILL ISSUE DEATH SENTENCE . ALL OF SRI LANKA ARE NOW DISGUSTED BY THIS JARAPAKSA CLAN ROBBING / MURDER COMMITTED

    • Sylvia Haik

      Before all that they should be made to return to our coffers the estimated $20 Billion they have pilfered.

  5. suraweera

    MR the para jadaya must be sent to the Gallows for what ruin he has done to the country and to the murders he committed with the other Bastard Gotabaya

  6. aggydaaggyddddsd

    Open the prison doors……… Hordes of Royalists can be queued up as well.

  7. former president has earn 400 million from CB ,bank from where he got the money, why president and prime minister lips tight,mr mahandran former governor bond he did mistake why he not proving the case, prime minister surprising the case, going circle to have presidential commission is eye wash,

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