CJ warns that the Govt. will have to pay huge money to banks if court ruling is reverted

He warned that the rule of law in the country will be diminished if the executive does not obey court rulings.

The CJ made the remarks as petitions against the hedging deals to control fuel prices were taken into consideration.

The Supreme Court earlier ordered the government to reduce the price of a litre of petrol to Rs. 100 but the government is yet to implement the order.

'Ready to revert' ruling

The cabinet of ministers have decided to reduce the price of a litre of petrol by only two rupees to Rs. 120.

If the executive takes the responsibility of offering the benefit of the fuel price reduction in the world market to Sri Lankan public, the court is prepared to revert a previous order against the hedging deals, CJ Silva added.

However, if that happens, the Chief Justice warned, the government will be forced to pay a considerable amount of money to private banks and the public would face a huge fuel price increase.

The judiciary earlier banned all payments due to private banks from the government according to the hedging deals signed by Ceylon Petroleum Corporation.

Courts allowed a request by the Attorney General to allow Secretary to the Finance Ministry to file objections until 27 January.

The hearing was postponed until 27 January.