Bank earns Rs 92.9 million from repo transactions with UL and SriLankan catering


By Rathindra Kuruwita

Commercial Bank has earned Rs. 92.9 million, through repo transactions it made with SriLankan Airlines and SriLankan Catering between 2014 and January 2018, the Presidential Commission of Inquiry (PCoI) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka was told yesterday.

Indika Sampath Wickramaratne, Back Office Manager of Commercial Bank told the PCoI that SriLankan Airlines had done repo transactions worth Rs 110 billion with the bank between April 2014 and January 2018. SriLankan Catering has done repo transactions worth Rs. 35 billion with the bank between May 2014 and January 2018. "The Commercial Bank earned an interest of Rs 60.2 million from repo transactions with SriLankan Airlines and Rs 32.7 million from transactions with SriLankan Catering," he said.

Commercial Bank has also purchased Treasury bonds worth Rs. 2.25 billion from SriLankan Airlines in March 2014, which had been sold later in 22 transactions. Senior State Counsel, Dishna Warnakula led the evidence. ‘Repo is short for repurchase agreement. Those who deal in government securities use repos as a form of overnight borrowing. A dealer or other holder of government securities (usually T-bills) sells the securities to a lender and agrees to repurchas them at an agreed future date at an agreed price.’

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