SC suspends oil hedging pact

Wasantha Ramanayake

COLOMBO: The Supreme Court yesterday suspended the remittance of any payments to a private bank in connection with controversial hedging contract entered into by the Ceylon Petroleum Corporation (CPC) and the Standard Chartered Bank.

The court forthwith suspended Asantha de Mel from functioning as the chairman of the CPC and suspended the hedging agreement until the final determination of the rights application filed by four petitioners.

The Court observed that President Mahinda Rajapaksa should consider the taking over the executive power of the Petroleum and Petroleum Resources Development Ministry and directed the Treasury Secretary to supervise the functions of the CPC until a permanent appointment is made to the chair of the CPC.

In terms of the court order the Government should directly import crude oil and finish products formerly imported by CPC and distribute them through the existing mechanism.

The Monetary Board of the Central Bank was ordered to look into the hedging contract and furnish a report on the taxes levied on Petrol.

Laughs Chairman C.H. Wegapitiya, Ven. Thiniyawala Palitha Thera and parliamentarian Ravi Karunanayake and Attorney-at-Law Ravi Jayewardene.