Karunanayake has told the ministers that he was against the compensation payment, as ordered by the high court, according to cabinet sources.
He has also tabled a paper seeking compensation to Nihal Sri Ameresekere for the Hilton Hotel shares acquired by the state.
Several ministers objected, questioning Karunanayake if he was deciding compensation on personal friendships and as to why Cornel Perera, who ran newspaper advertisements in 2012, 2013 and 2014 as the holder of 56 per cent of shares, was not considered for compensation.
The finance minister made no response to that, but said if the cabinet agreed not to pay compensation in view of its financial difficulties, he too, would give his consent.
Previously too, Karunanayake submitted a cabinet paper to pay compensation to Ameresekere, but the president ruled it out.