Sri Lanka Treasury Secretary asked not to resign

July 29, 2008 (LBO) – Sri Lanka’s Treasury Secretary P B Jayasundera, who submitted his resignation to President Mahinda Rajapaksa after a court order faulted him over a privatization deal, has been asked to continue in his position. The court said Jayasundera had acted in collusion with the current JKH chairman, Susantha Ratnayake, a director of the group at the time of the privatisation of LMS, to obtain illegal benefits to JKH.

Jayasundera is also a member of the rate setting monetary board of Sri Lanka’s central bank.

Amended Jayasundera had been prevailed upon by senior government figures not to resign, official sources told our sister news website Vimasuma.com.

They said that Jayasundera’s resignation could affect the implementation of the government’s development programmes.

Jayasundera Monday tendered his resignation from the post of Treasury Secretary and Secretary to the finance ministry to Rajapaksa.

The supreme court last Monday said Jayasundera had exceeded his authority and taken decisions biased in favour of conglomerate John Keells Holdings in the privatisation of Lanka Marine Services (LMS), the state-owned bunkering firm.

The court imposed a fine of half-a-million rupees on Jaya