Notice Issued on Treasury

The Court of Appeal recently issued notice on the Secretary to the Treasury and four other officers of the Treasury in a Writ application filed by Sri Lanka Local Government Workers Union to compel respondents to prepare the necessary papers for the incorporation of the State Employees Development Finance Corporation for presentation to the Cabinet.

The Bench comprised President of the Court of Appeal Justice Chandra Ekanayake. According to petitioners the Union was formed with the main objective to provide better financial facilities to the Government Servants such as providing various kinds of loan facilities to the Government servants for a lower interests and established the 'State Employees Development Finance Corporation' for this purpose.

The petitioner states that a decision was taken at a meeting held with the then Minister of Labour and several steps were taken to establish an initial capital and further decided to incorporate the Financial Corporation by a monetary act in order to obtain some contribution to the initial capital from State funds.

Accordingly a Bill was presented to the Parliament as a private members Bill in order to incorporate the State Employees Development Finance Corporation on 2004.09.07 in proof of which of the said Bill is annexed hereto marked as 'P5' and pleaded as part and parcel hereof. The Petitioner states that even though the direction was given by the Minister of Finance to prepare necessary papers the officials of the Treasury was reluctant to take necessary actions without delay.

The Petitioner states that having fulfilled all necessary prerequisites and demands of the Respondents they entertained legitimate expectation that their financial institution would be incorporated and necessary papers would be presented to the Cabinet as well as to the Parliament by the Respondents but in surprise turn of events the 5th Respondent by his letter dated 2007.11.06 informed the Chairman of the Finance Corporation that the Treasury cannot implement the incorporation of their Finance Corporation as a Government policy.

Dr. Jayatissa De Costa with Chintaka Siriwansa appeared for the petitioner Union.