Connect with us

News

PMB declines to release Rs 1.2 bn FD for paddy purchasing

Published

on

Treasury forced to bear responsibility for Rs 2 bn in loans

By Shamindra Ferdinando

State Finance Minister Ranjith Siyambalapitiya has said that the State Banks weren’t in a position to release funds to the Paddy Marketing Board (PMB) as the enterprise owed them a staggering sum, running to over Rs 20 bn.

Due to the failure on the part of the state enterprise to settle previous loans, the Treasury has been compelled to accept the responsibility for repaying them, the State Minister said.

The Kegalle District lawmaker said so on the live political programme, Salakuna, telecast on Hiru on Monday night. The State Minister was responding to interviewer Chamuditha Samarawickrema’s query regarding the inordinate delay on the part of the government to implement the paddy purchasing scheme.

Referring to Agriculture Minister Mahinda Amaraweera’s abortive efforts to obtain the required funding, lawmaker Siyambalapitiya said that the Treasury was helpless.

State Minister Siyambalapitiya said the PMB couldn’t be faulted for the crisis as successive governments had directed the state enterprise to purchase paddy at a higher price, then ordered it to sell at a much lower price, thereby causing staggering losses.

The State Minister also acknowledged management level shortcomings and political interventions caused the ruination of the PMB.

The PMB owed the Bank of Ceylon and the People’s Bank Rs 1,600 mn and Rs 690 mn, respectively.

The State Minister acknowledged that the issue couldn’t be resolved in spite of interventions made by President Ranil Wickremesinghe and Premier Dinesh Gunawardena. Referring to a subsequent discussion he had with the Secretary to the Treasury Mahinda Siriwardana, lawmaker Siyambalapitiya said that the BOC has asked for Rs 1.2 bn fixed deposit as security though the PMB declined to do so. According to the State Minister the PMB asserted that it couldn’t forgo the fixed deposit as the

interest received was utilized for day to day running of its operations.

The State Minister said that the banks could release the required funding on the basis of a guarantee given by the Treasury. The lawmaker explained the inability on the part of the Treasury to give such a guarantee as further deterioration of public finance could have a devastating impact on the banking sector. Such an eventuality couldn’t be allowed, the SLFPer said.

The Minister acknowledged that the failure on the part of the government to launch a paddy purchasing scheme would dishearten the farmer community.

Chamuditha Samarawickrema pointed out that the private sector had managed their ‘operations’ in a much better way.

The State Minister said that the situation was so bad that of the recent Rs 93 mn public sector salary bill, the government could meet Rs 82 mn. The government had no option but to ask those state enterprises to pay salaries from their funds, pending repayment, the MP said, reiterating the Treasury couldn’t help the PMD at the moment.

Responding to further questions, the State Minister said that the government would definitely give priority to the PMD issue once they finalized public sector salary payments. The Minister urged the media not to pursue an agenda detrimental to the government’s recovery efforts. Asked to explain, the State Minister said that there had been accusations the government didn’t purchase paddy to clear the field for the private sector. The Hiru team pointed out that the banks had released substantial amounts to the private sector to purchase paddy. The Minister explained the banks tried their best to help but circumstances were such the government couldn’t help at the moment.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Cabinet Subcommittee on the Development of 25 Technical and Vocational Colleges meets under the Chairmanship of the Prime Minister

Published

on

By

The third meeting of the Cabinet Subcommittee appointed to oversee the development of 25 Technical and Vocational Colleges under the Department of Technical Education and Training was held today (09) at the Parliament Complex under the chairmanship of Prime Minister Dr. Harini Amarasuriya.

The meeting focused on the proposed development programme for the 25 Technical and Vocational Colleges as a key step towards expanding access to vocational education, implementing plans to strengthen infrastructure, and creating new pathways for technical and vocational education in Sri Lanka. Members held detailed discussions on the measures required to advance these objectives.

The meeting was attended by the Minister of Ports, Civil Aviation and Energy, Anura Karunathilaka,the Minister of Labour and Deputy Minister of Economic Planning, Dr. Anil Jayantha, the Minister of Rural Development, Social Security and Community Empowerment, Dr. Upali Pannilage, as well as senior officials from the Ministries of Education, Higher Education, and Vocational Education.

[Prime Minister’s Media Division]

Continue Reading

News

Representatives of the Organization of Professional Associations (OPA) of Sri Lanka meet the Prime Minister

Published

on

By

Representatives of the Organization of Professional Associations (OPA) of Sri Lanka met with Prime Minister Dr. Harini Amarasuriya on Wednesday (08) at the Parliament premises.

During the discussion, the OPA representatives stated that the organization intends to establish a mechanism to provide direct professional advice to members of the public facing issues across various sectors. They also noted that OPA plans to implement special programmes to offer pre-advice and guidance through its member professional associations to people encountering issues in fields such as agriculture, construction, medicine, and law.

The Prime Minister commended the contribution made by professionals towards enhancing professional standards in the country and advancing national development. The Prime Minister further stated that the Government is ready to support efforts aimed at strengthening professionalism and fostering the sense of national service in the country.

The meeting was attended by the President of OPA, Vice President, and other office bearers of the Organization of Professional Associations of Sri Lanka.

[Prime Minister’s Media Division]

Continue Reading

Latest News

District Secretaries’ Conference Chaired by the President

Published

on

By

President Anura Kumara Dissanayake stated that the Government plans to allocate a separate contingency fund for every district under the forthcoming Budget, enabling District Secretaries to carry out urgent repairs to bridges, roads and public buildings identified at District Coordination Committee meetings without having to wait for approval from the Central Government.

The President also emphasised that the Government’s foremost priority is to address the basic needs of the people without delay.

President Anura Kumara Dissanayake made these remarks while attending the District Secretaries’ Conference held this morning (09) at the Colombo District Secretariat.

The conference was convened with the objective of strengthening coordination among relevant stakeholders to ensure the more efficient and effective delivery of public services, while promoting district-level economic development by discussing local issues and identifying appropriate solutions.

The discussions also focused on reviewing the progress of district development projects, enhancing coordination between ministries and government institutions, identifying issues at the district level, proposing practical solutions, and assigning responsibilities and follow-up actions.

It was further emphasised that, in the interest of public safety, Divisional Secretaries should prevent people from resettling in areas identified as high-risk and refrain from approving basic utility services, including electricity and water, for such locations.

The President also reviewed the progress of efforts to establish a special authority with statutory powers to manage environmentally sensitive land in the Central Hills. It was noted that the relevant draft legislation has already been prepared and that the new authority is expected to commence operations next year.

The President further stressed that resolving the housing issues faced by war-displaced communities remains a Government priority, adding that plans are in place to resettle 13,000 war-displaced families during the coming year.

He also highlighted the need to systematically implement a programme to relocate people living in areas that are repeatedly affected by floods and landslides to safe and secure housing.

The President also drew attention to housing projects that had been initiated in an unplanned manner for various reasons, including political considerations, and subsequently abandoned midway. He stated that the Government intends to conduct a rapid survey to identify only those projects that are genuinely required by the public and implement a housing assistance programme to provide financial support for the completion of those houses.

The President further emphasised the importance of carrying out housing and other construction projects in accordance with a proper planning framework. He pointed out that numerous issues had arisen as a result of unplanned construction in the Southern Province and stressed that development in the Northern and Eastern Provinces should be undertaken in line with a systematic development plan.

He also noted that, while taking public needs into consideration, the Government is focusing on releasing privately owned land currently under the control of military camps. At the same time, attention is being given to making other large tracts of land available for investment. The President further stressed that, when allocating land for cultivation, measures must be taken to safeguard forest reserves and wildlife protection zones.

Reiterating the need for comprehensive public sector reforms to deliver a high-quality public service, the President stated that plans are in place to abolish non-productive institutions in order to improve the efficiency of the public service.

He further noted that steps have already been taken to fill vacancies in essential sectors, including health and education. The President also pointed out that measures are being taken to urgently fill vacancies in the Department of the Government Analyst in order to address delays in the issuance of Government Analyst reports, which have contributed to prison overcrowding.

Minister of Public Administration, Provincial Councils and Local Government Professor Chandana Abeyratne, Deputy Minister of Provincial Councils and Local Government Ruwan Senarath, Secretary to the President Dr Nandika Sanath Kumanayake, Chief of Presidential Staff Prabath Chandrakeerthi, Secretary to the Ministry of Public Administration, Provincial Councils and Local Government Aloka Bandara, Ministry Secretaries, all District Secretaries, Heads of Departments and other senior government officials were also present.

[PMD]

Continue Reading

Trending