By Yohan Perera   

The United National Party (UNP) yesterday questioned the legal validity of the decision taken by the government to default loans which were to be settled this month.   

UNP Chairman Vajira Abeywardene told a press conference that there is a legal issue pertaining to the decision made by the government to default loans that has to be paid.   

“The approval of the Central Bank Monetary Board, Finance Ministry and Parliament is needed to decide on defaulting as per the constitution. Parliament has powers over finances under article 149 of the constitution. If approval has not been taken for the declaration of default it is a serious situation. Any creditor could file legal action against the government if the declaration of default is illegal,” Mr. Abeywardene said. “Government has to settle one billion dollars by June this year while it is currently liable for more than 1,000 letters of credit currently.