UPFA regime had signed an agreement with Aircap Corporation in 2012 to purchase several aircraft. But the current government had cancelled that agreement on the basis that the intended purchase was not necessary. Under the agreement Srilanka Government is obliged to pay compensation to the Aircap Corporation.
The Finance Ministry has estimated cancellation compensation of US$ 154 million . The sum of compensation between USS 75-85 million had been ratified by Cabinet after a Cabinet Sub-Committee formed to look into the matter sanctioned it. Followed by this, the cabinet had agreed on a payment of between USS 75-85 million.
In yesterday’s cabinet meeting , sources revealed that Minister Hashim had pointed out that the decision taken by the Finance Ministry to pay a hefty sum as compensation, having disregarded the amount agreed by the subject Minister and the Cabinet, was unethical and was an arbitrary decision. He fired on Ravi .
Ministers , Patali Ranawaka and Dr. Sarath Amunugama had also spoken in support of Minister Kabir Hashim at the Cabinet meeting.
It is also learnt that President Maithripala Sirisena has advised the Finance Ministry to temporarily suspend the payment of compensation to Aircap Corporation.
