The involvement of the Bank of Ceylon (BoC) and Merchant Bank of Sri Lanka (MBSL) in preparing a Business Plan for Mihin Lanka despite the existing Business Plan was revealed before the Presidential Commission of Inquiry (PCoI) into the Sri Lankan Airlines, Sri Lanka Catering, and Mihin Lanka yesterday.
The former Mihin Lanka Commercial Head Rohan Perera testifying before the PCoI said the company obtained the support of MBSL not to prepare a new plan but to revise S.A Chandrasekara’s plan, which was in effect by that time.
Referring to documentary evidence, Perera pointed out that a group of officials from the MBSL had been appointed to fulfill this task, but, he was not aware whether they had the required knowledge or expertise to do that.
When questioned by State Counsel Chathura Gunatilaka as to how the MBSL came up with revising or preparing a business plan as a bank, the witness was unable to answer this in a satisfactory manner. But he said a Board paper presented by the then Chief Executive Officer (CEO) Sajin de Vass Gunawardena on October 15, 2007 says that the BoC has submitted a proposal from MBSL to develop a business plan for Mihin Lanka.The proposed cost was Rs.2 million.
The witness also had no clear answer when the PCoI Chairman, retired Supreme Court Judge Anil Gooneratne inquired whether there was a real necessity for Mihin Lanka to have S.A Chandrasekara’s plan revised from a third party.
Mihin Lanka, the budget airline was set up in 2006 and terminated from its operations in 2016 due to the heavy losses incurred by the company for years.
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