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The legal action of defamation follows the Rajapakse’s statement to media saying that the Finance Minister Karunanayake had instructed Lankaputhra Bank which is fully owned by the government to issue loans without conditions.
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“We have not been instructed or given orders to give loans to people by the Minister (Karunannayake),”Lasantha Gunawardena, new chairman of the Lankaputhra Development Bank said at a media conference held at Colombo.
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“But under the instruction of former government, the bank has given loans to some selected individuals and some of the loans has been converted to bad debt,” Gunawardena further said that, the bank has more than 1,600 million rupees of non - performing loans which was given under the former regime.