Supreme Court accused Mr. de Mel of 'gambling with public money'

A three-bench panel chaired by the Chief Justice Sarath Nanda Silva also recommended president Mahinda Rajapaksa replace minister in charge of petroleum resources, AHM Fowzie.

The court issued the stay order after considering two petitions seeking annulment of hedging agreements signed by Mr. de Mel with two private banks for purchasing fuel.

Payments stopped

Petitioners' counsels told the court on Friday that Mr. de Mel has not sought approval from the cabinet of ministers or any other authority before signing the agreements.

Accusing Mr. de Mel of 'gambling with public funds,' CJ Sarath Silva added that Sri Lanka has lost 700 million USD as a result of the deals.

	Minister is accused of protecting the 'corrupt chairman'

The government was ordered to immediately stop further payments according to the agreement and the court ordered Central Bank to launch a full investigation into the deals.

The Supreme Court further ordered the Secretary to the Treasury to prepare a formula to regulate fuel prices change in Sri Lanka according to the oil prices in the world market and report within two weeks.

While one petition was filed by the chairman of Laugfs gas company WKH Vegapitiya, other petition was filed by Kiniyawala Palitha thero, Ravi Karunanayake MP and Ravi Jayawardene.

Granting leave to proceed to the petitions, the hearing was postponed until 15 December.