He has also claimed that the move to obtain the loan raises the question whether it is to fund corruption in government. Wickremesinghe in his letter sent to Chairman and CEO of JP Morgan Chase in New York, James Dimon and CEO, Hong Kong and Shanghai Banking Corporation in Hong Kong, Steven K Green had also outlined the legal basis on which a future UNP government will not honour the repayment obligations under the bond issue

In the letter dated August 24, Wickremesinghe has stated that apart from the serious implications the bond issue would have on the economy, the country's parliament has not been informed of a bond issuance of this magnitude and that it was not clear for what purpose the funds raised were to be utilised.

The Opposition Leader has also stated it was evident that the government would not be able to repay the proposed bond issue given the unfavourable security and economic conditions in the country.

Wickremesinghe has also noted that questions raised by him on the reason for the government to embark on such a bond issue from the Prime Minister on August 23 were unanswered raising suspicion as to the real reason behind the bond issue.

"I therefore, asked the Hon. Prime Minister of Sri Lanka on the floor of the House of Parliament on 23rd August 2007, as to what purpose lay behind his government embarking on such an ambitious bond issue. He was unable to answer my question. This raises the question of whether these monies will be used to fund corruption in government," the letter states.

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