Fin. Min. defends release of funds

• Says over $ 53,000 released on appeal of Iranian Ambassador
• Funds were payment for workers of controversial Uma Oya project 
• Ministry insists Finance Minister has power to release money, similar appeal received in June 2018

The Finance Ministry yesterday rejected reports it had given illegal instructions to release over $ 53,000, insisting that the release of funds was legal as it was made on an appeal by the Iranian ambassador as payments for workers of the Uma Oya project.    

“Attention of the Ministry of Finance and Economic Affairs is drawn to the reports in social media on the alleged illegal instruction given by the Minister of Finance to Sri Lanka Customs to release the foreign currency in US dollars that was apprehended while being illegally smuggled out at the BIA.

“The Sri Lanka Customs officials sometime back had apprehended an outbound foreign national at the BIA while he was attempting to take out of the country $ 53,455 in contravention of the Customs Ordinance. It was reported that the foreign nationals who work at the Uma Oya project, which is funded by the Republic of Iran, have sent their monthly salaries through this person out of the country,” it said. 

According to the statement, the Iranian Ambassador in Colombo on 3 October made an appeal to the Finance Minister to release the money on “humanitarian grounds” as the funds belonged to the employees working on the controversial Uma Oya project.

Accordingly, Mahinda Rajapaksa, the Finance Minister in the Cabinet formed between himself and President Maithripala Sirisena, by virtue of the powers vested in him under Section 164 of the Sri Lanka Customs Ordinance, directed the Director General of Sri Lanka Customs to release this money to its legitimate owner, the statement said.

“This is not the first time that foreign nationals who are working in the Uma Oya project are taking their monthly salary out of the country. Previously, when a foreign national was apprehended while attempting to smuggle out foreign currency, on a similar appeal the then Minister of Finance had directed the release of the money in June 2018 as well,” the statement said.