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Tuesday, 21 August 2018
Tuesday, 21 August 2018 | Sri Lanka Watch
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Bankrupting the State Banks –says Ravi K and Hadunneththi PDF Print E-mail
The main opposition UNP said yesterday that the President’s order for State banks to reduce loan interest rates immediately would cost the government a revenue loss of Rs.70 billion while some reports had indicated the loss to even exceed Rs.140 billion.

UNP front-liner Ravi Karunanayake told a news conference this sudden move would cause an about-turn for several State banks including the People’s Bank whose profit of Rs. five billion would be turned into a loss of Rs.1.9 billion.

He said this would create more problems for the economy, especially at a time several other state institutions were running at enormous losses.

altGiving his views on the Bank interest issue Sunil Hadunneththi the Member of Parliament (JVP) said that the reduction in the interest rates paid by banks on deposits will lead to reduced savings by the public which in turn will finally lead to collapses the whole banking sector.

He also said that although the reductions of the bank charges of the state banks will provides relief to the public it also will place many thousands of depositors in great difficulties and above situation will also lead to cripple the whole banking system. The MP also said that all banks depend on the deposits made by depositors and the Govt. should reveal to the country about the strategy that will protect the banking system of the country in the absences of deposits.

Handunneththi says the Govt. also should help the depositors in the same manner the same way it reduced the bank interests.  Govt. will not be able to prevent the collapsing of whole economy, if the banking system started to fail and the Treasury also will not be able to obtain Rs. 80000 millions loans annually from state banks” added the MP.

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