News
Ministers of Justice and Health on collision course with association of banks
Wijeyadasa pushes for suspension of Parate executions:
‘Country paying heavy price for not having proper tax regime, favourable treatment to some’
By Shamindra Ferdinando
Justice, Prisons Affairs and Constitutional Reforms Minister Dr. Wijeyadasa Rajapakse, PC, has assured the local business community, troubled by parate executions, that laws will be brought in to regulate the practice. The Justice Minister said he would work with Health Minister Dr. Ramesh Pathirana to convince the Cabinet-of-Ministers to change the law.
The assurance was given at a meeting held at the Jasmin Hall, BMICH, where the former President of the Bar Association explained how the law meant to recover unpaid loans and interest thereon was brazenly abused.
The gathering was told that approximately 1,400 businesses were already in distress, especially in Colombo, due to the one-sided swift action taken by banks to recover unpaid loans by seizing and auctioning mortgaged properties without taking into consideration the political-economic-social crisis caused by the 2019 Easter Sunday attacks, followed by the Covid-19 pandemic and the subsequent economic crisis.
Minister Rajapakse said that either the existing law, the Banking Act no 30 of 1988, had to be overhauled or a new Act introduced to prevent the further deterioration of the economy.
Parate execution can be carried out only by the licensed commercial banks of Sri Lanka.
Following Dr. Rajapakse’s declaration, the Sri Lanka Banks Association (SLBA) stressed that the banks exercised what the Association called their legally-enshrined right to parate execution as a last resort. The Association declared that the overarching objective was to protect depositors’ funds that had been lent to borrowers.
The Association emphasised that the parate execution remedy is aimed at recovering mortgaged assets from willful defaulters and businesses that were no longer viable.
The SLBA, which represents all the licensed banks in the country, pointed out that banks have extended moratoriums on debt repayment for a long period exceeding 48 months in some cases, and that in instances of willful default by borrowers, the banks owe a duty to their depositors’ whose funds are at risk, to recover the debts overdue and minimize the losses on loans granted.
Legal sources pointed out that the association never bothered to issue statements when huge amounts of money recklessly lent and overdue from top end borrowers were written off as bad debts.
Minister Rajapakse told Friday’s meeting that before the change of government, in 1977, only the Bank of Ceylon, People’s Bank and State Mortgage and Investment Bank were empowered to carry out parate executions. However, subsequently private banks and financial institutions, having made representations to the then President, secured parliamentary approval to join the club.
The government disregarded the concerns expressed by the Bar Association at that time, the Justice Minister said, alleging there had been many instances of misuse at the expense of the clients experiencing financial difficulties.
Valuable properties that had been seized under parate execution had been bought for a song and then sold keeping a huge profit margin, the Justice Minister said, asserting that a deeply flawed law caused injustice.
Dr. Rajapakse warned unless the continuing manipulation of the law wasn’t stopped through an amendment to the existing Act or by introducing a new Act, the banks, too, would have to face far reaching consequences. The significant depletion of industrial and commercial borrowers under the dire current circumstances and significant weakening of the client base as a whole could have a negative impact on the entire banking system, the Justice Minister warned.
The President’s Counsel also questioned ‘irrevocable power of attorney’ that lenders obtain from borrowers over mortgaged properties while declaring his intention to bring in necessary amendments to restore public confidence in the system. The Minister pointed out that the ‘irrevocable power of attorney’ couldn’t be done away with. “This is wrong and not practiced anywhere in the world,” the outspoken Minister said.
The government couldn’t forget that a section of the business community had been subjected to such unfair practices at a time the people were burdened with taxes and faced further increased levies, such as VAT from January 1, 2024. How could one do business under such difficult circumstances, the Dr. Rajapakse asked?
The MP, who had first entered Parliament, back in 2004, on the then PA National List, found fault with successive governments for failing to adopt a proper tax policy. Declaring that once adopted a particular tax regime should be in place for at least a decade, lawmaker Rajapakse pointed out how the country suffered for want of proper tax strategy.
The Minister told The Island that the way governments had handled the economy was questionable and those responsible owed the country an explanation and apology. Dr. Rajapakse questioned the utter failure on the part of the Central Bank to recover the loans granted to various failed finance companies. “I raised this issue in Parliament recently but unfortunately those responsible are yet to take tangible measures in this regard,” Dr. Rajapakse said.
Referring to a declaration he made in Parliament on November 15, this year, Dr. Rajapakse said that Mercantile Credit, one of the beneficiaries of government grants, was yet to pay back Rs. 30,000 million it owed to the Central Bank.
The Minister said so during the debate on the Second Reading of Budget 2024.
“It is a massive borrowing by a single entity that is more than what his Ministry’s vote amounts to,” Dr. Rajapakse said. Those behind the scheme hadn’t been punished, the Minister charged.
SJB trying to take control of CMC
Govt. suffers set back in N&E
SLPP records significant increase in votes but fails to win single body
The ruling National People’s Power (NPP) secured 266 out of 339 local government bodies at the May 6 election but suffered a setback in the northern and eastern regions as the Illankai Thamil Arasu Kadchi (ITAK) and the Sri Lanka Muslim Congress (SLMC) won 42 local authorities.
The ITAK and SLMC secured 37 and 05 local government bodies, respectively, although President Anura Kumara Dissanayake personally led the NPP’s campaign in the former war zone. The National Congress won the Akkaraipattu MC. In the last parliamentary election held in Nov. 2014, the NPP won all electoral districts, except Batticaloa.
The NPP obtained 4,503,930 votes countrywide whereas in the last parliamentary election it received 6,863,186 votes; there has been a drop of 2,359,256 votes.
The Samagi Jana Balawegaya (SJB) won 13 local government bodies, but the United National Party (UNP) and the Sri Lanka Podujana Peramuna (SLPP) failed to secure any.
The SLPP obtained 954,517 votes and 742 seats, accounting for 9.17% of the national vote. In a post on X, SLPP’s National Organiser Namal Rajapaksa said: “Over the past six months, the SLPP has regrouped and gained momentum by staying true to our principles. While some rely on false promises, we remain committed to honest, principled politics that put the people first. Thank you to everyone who stood by us. This is just the beginning. We will keep working, village by village, to rebuild and restore trust in real leadership.” The SLPP polled only 350,429 votes in last year’s general election.
In the 2018 LG polls, the SLPP won 231 councils. That was the first time the government of the day failed to win mini polls. Yahapalana partners, UNP and SLFP, having contested separately, suffered a debilitating setback.
In spite of the massive campaign carried out by the NPP, targeting the Colombo Municipal Council (CMC), the ruling party failed to secure an overall majority there. The NPP polled 81,000 votes to obtain 48 seats whereas the SJB and UNP polled 58,375 (29 seats) and 26,297 (13 seats) votes, respectively. The SLPP (05), SLMC (04), United Republican Front (01), United Peace Alliance (02), Sarvajana Balaya (02), and National People’s Party, National Freedom Front, People’s
Alliance and Democratic National Alliance one each.
In addition to political parties, five Independent Groups shared the remaining 09 seats of the CMC.
With no party holding a clear majority, the next Colombo Mayor will need to be elected through a Council vote.
SJB General Secretary Ranjith Madduma Bandara told a hastily arranged media conference that the SJB intended to elect an SJBer as Colombo Mayor with the help of the other Opposition parties. The former Minister said that the SJB would cooperate with the other parties in the Opposition regarding the appointment of Mayors and Chairmen of the hung local councils.
Meanwhile, the Leader of the House, Bimal Ratnayake, has said those who won local government bodies in the Northern Province but without absolute majorities have sought NPP support to form administrations.
Addressing a separate media briefing, JVP General Secretary, Tilvin Silva, declared that the ruling party wouldn’t, under any circumstances, form coalitions with those who had been rejected by the people.
Colombo District
NPP:
Colombo MC, Dehiwala-Mount Lavinia MC, Sri Jayewardenepura MC, Moratuwa MC, Kaduwela MC, Kolonnawa UC, Seethawakapura UC, Maharagama UC, Kesbewa UC, Boralesgamuwa UC, Kotikawatte PS, Seethawaka PS and Homagama PS.
Gampaha District
NPP:
Negombo MC. Gampaha MC, Wattala-Mabola UC (both NPP and SJB obtained six seats each), Katunayaka-Seeduwa UC, Minuwangoda UC, Ja-ela UC, Peliyagoda UC, Wattala PS, Katana PS, Divulapitiya PS, Mirigama PS, Minuwangoda PS, Attanagalle PS, Gampaha PS, Mahara PS, Dompe PS, Biyagama PS and Kelaniya PS.
Kalutara District
NPP:
Panadura UC, Horana UC, Kalutara MC, Panadura PS, Bandaragama PS, Horana PS, Madurawala PS, Bulathsinhala PS, Matugama PS, Dodangoda PS, Kalutara PS, Beruwala PS, Agalawatta PS (both NPP and SJB obtained six seats each), Millaniya PS and Walallawita PS
Kandy District
NPP:
Kandy MC, Wattegama UC, Kadugannawa UC, Nawalapitiya UC, Thumpane PS, Harispattuwa PS, Poojapitiya PS, Pathadumbara PS, Udadumbara PS (both NPP and SJB obtained six seats each), Minipe PS, Medadumbara PS, Kundasale PS, Pathahewaheta PS, Kandy Four Gravets and Gangawatta Korale PS, Yatinuwara PS, Udunuwara PS, Udapalatha PS, Ganga Ihala Korale PS and Pasbage Korale PS.
Matale District
NPP:
Dambulla MC, Matale MC, Pallepola PS, Galewela PS, Dambulla PS, Naula PS, Laggala-Pallegama PS (both NPP and SJB obtained six seats each), Wilgamuwa PS, Matale PS, Yatawatta PS, Ukuwela PS, Rattota PS.
Nuwara Eliya District
NPP
Nuwara Eliya MC, Hatton-Dikoya UC, Thalawakale-Lindula UC, Maskeliya PS, Norwood PS (NPP and Ceylon Workers’ Congress ‘P’ wing won six seats each), Ambagamuwa PS, Agarapathana PS (NPP and Ceylon Workers’ Congress ‘P’ wing won four seats each), Kotagala PS ((NPP and Ceylon Workers’ Congress ‘P’ wing won five seats each), Nuwara Eliya PS, Kothmale PS, Hanguranketha PS and Walapone PS.
Galle District
NPP:
Galle MC, Ambalangoda UC, Hikkaduwa UC, Balapitiya PS, Ambalangoda PS, Welivitiya Divithura PS, Karandeniya PS, Bentota PS, Neluwa PS, Thawalama PS, Nagoda PS, Niyagama PS, Baddegama PS, Yakkalamulla PS, Rajagama PS, Akmeemana PS, Bope Poddala PS, Imaduwa PS and Habaraduwa PS.
Matara District
NPP:
Matara MC, Weligama UC, Pitabeddara PS, Kotapola PS, Kirinda Puhulwella PS, Mulatiyana PS, Pasgoda PS, Athureliya PS, Akuressa PS, Malimbada PS, Hakmana PS, Kamburupitiya PS, Thihagoda PS, Devinuwara PS, Dikwella PS, Matara PS and Weligama PS.
Hambantota District
NPP:
Hambantota MC, Tangalle UC, Weeraketiya PS, Katuwana PS, Beliatta PS, Tangalle PS, Angunakolapelessa PS, Ambalantota PS, Tissamaharama PS, Sooriyawewa PS, Hambantota PS and Lunugamwehera PS.
Jaffna District
ITAK:
Jaffna MC, Chavakachcheri UC (ITAK and ACTC won six seats each), Delft PS, Velanai PS, Walikamam west PS, Walikamam north PS, Walikamam south-west PS, Walikamam south PS, Walikamam east PS, Vadamaratchchy South West PS, PPD PS, Chavakachcheri PS and Nallur PS.
ACTC
VVT UC, PPD UC, Karainagar PS ( ACTC, UNP, NPP , TMK and Ind group ii won two seats each), Kayts PS (EPDP),
Kilinochchi District
ITAK:
Pachchilaippalli PS, Karachchi PS and Poonakary PS
Mannar District
ITAK:
Mannar UC, Mannar PS, Manthai West
NPP:
Nanattan PS
SJB:
Musali PS
Vavuniya District
Vavuniya MC (DTNA, NPP and Sri Lanka Labour Party won four seats each)
NPP:
Vavuniya north PS, Vavuniya south (Tamil) PS and Vavuniya South (Sinhala) PS
SJB:
Vengalasettikulam PS
Mullaitivu District
ITAK:
Manthai East PS, Thunukai PS
ITAK:
Puthukudirippu PS and Maritimepattu PS
SJB:
Kalutara District
Palindanuwara PS
Kandy district
SJB:
Gampola UC
Akurana PS
Panwila PS
Matale
Ambanganga Korale PS
Kalutara District
Ind. Group 1 Beruwela UC
Batticaloa district
ITAK:
Batticaloa MC, Eravurpattu PS, Koralaipattu PS, Manmunai South and Eluvil Pattu, Manmunai Pattu PS, Manmunai West and Porathivu Pattu PS.
SLMC:
Eravur UC, Kathankudi UC,
TMVP:
Koralai Pattu North, Manmunai South West PS (ITAK and TMVP won six seats each)
Ampara district
National Congress:
Akkaraipattu MC, Akkaraipattu PS
NPP:
Ampara UC, Dehiattakandiya PS, Damana PS, Uhana PS, Mahaoya PS, Namaloya PS, Padiyatalawa PS, Lahugala PS,
ITAK:
Navithanveli PS, Alayadiwembu (ITAK and NPP won seven seats each), Karaitheevu PS
ACMC:
Sammanthurai PS, Ninthavur PS
SLMC:
Irakkamam PS, Addalachenai PS,
Independent Group 4
Pottuvil PS
Independent Group 1
Thirukkovil PS
Trincomalee District
ITAK:
Trincomalee MC, Verugal PS, Trincomalee town and Gravets PS, Muttur PS,
ACMC:
Kinniya UC (SJB and ACMC won four seats each) and Kinniya PS
NPP:
Seruwila PS, Kantale PS, Morawewa PS, Gomarankadawela PS, Padavisripura PS, Thambalagamuwa PS (NPP and SJB won three seats each)
SLMC:
Kuchchuveli PS,
Kurunegala District
NPP:
Kurunegala MC, Kuliyapitiya UC, Giribawa PS, Galgamuwa PS, Polpithigama PS, Nikaweratiya PS, Kobeigane PS, Mahawewa PS, Ibbagamuwa PS, Wariyapola PS,Panduwasnuwara PS, Bingiriya PS, Udubaddawa PS, Pannala PS, Kuliyapitiya PS, Alawwa PS, Narammala PS, Polgahawela PS, Kurunegala PS, Mawathagama PS and Rideegama PS.
Puttalam District
NPP:
Puttalam MC, Chilaw UC, Kalpitiya PS (NPP and SJB won 10 seats each), Puttalam PS, Wanathawilluwa PS, Karuwalagaswewa PS,Nawagaththegama PS, Anamaduwa PS, Arachchikattuwa PS, Chilaw PS, Nattandiya PS and Wennappuwa PS.
Anuradhapura District
NPP:
Anuradhapura MC, Medawachchiya PS, Rambawewa PS, Kebitigollewa PS, Padaviya, Kahatagasdigiliya PS, Horowpothana PS, Galenbindunuwewa PS, Thalawa PS, Nuwaragampalatha Central PS, Nuwaragampalatha east PS, Nochchiyagama PS, Rajanganaya PS, Galnewa PS, Ipologama PA, Mihintale PS, Thirappane PS, Kekirawa PS and Palagala PS.
Polonnaruwa District
NPP:
Polonnaruwa MC. Elahera PS, Hingurakgoda PS, Medirigiriya PS, Lankapura PS, Welikanda PS, Dimbulagala PS and Polonnaruwa PS.
Badulla District
NPP:
Badulla MC, Bandarawela MC, Mahiyanganaya PS, Ridimaliyadde PS, Soranthota PS,Meegahakivula PS, Kankaketiya PS, Passara PS, Lunugala PS, Badulla PS, Hali ela PS, Uva Paranagama PS, Welimada PS, Bandarawela PS, Ellpa PS,Haputale PS and Haldamulla PS.
Independent Group:
Haputale UC
Moneragala District
NPP:
Bibile PS, Medagama PS, Madulla PS, Siyambalanduwa PS, Monaragala PS, Badalkumbura PS, Buttala PS, Kataragama PS, Wellawaya PS and Thanamalwila PS
NPP also won all LG authorities in Ratnapura and Kegalle districts.
Fifteen Lankans, forcibly held in cybercrime camps in Myanmar, had been rescued on Tuesday (06), government sources said.
This operation was carried out through coordination between the Sri Lankan Ministries of Foreign Affairs, Foreign Employment, and Tourism, along with the Sri Lankan Embassy in Thailand and the Thai government.
The rescued Sri Lankan youth were handed over to the Sri Lankan Ambassador in Thailand, Wijayanthi Edirisinghe, by Thai authorities on Tuesday morning in Mae Sot, located in the Myawaddy region, along the Myanmar-Thailand border. Officials from the Thai Embassy also attended the handover.
This rescue was the result of diplomatic efforts and telephone discussions held by Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, with Thailand’s Minister of Foreign Affairs, Maris Sangiampongsa, and Myanmar’s Minister of Foreign Affairs, U Than Swe.
The rescue operation was supported diplomatically by the Thai Embassy, the International Organisation for Migration (which provided transportation), non-governmental organisations offering welfare assistance, and officials of the Thai and Myanmar governments.
Minister Vijitha Herath expressed appreciation for their roles.
Previously, 14 Sri Lankans were rescued from cybercrime camps in Myanmar on March 18, and 27 others were brought back to Sri Lanka on Dec. 17, 2024.
By Shyam Nuwan Ganewatte
Showers may occur in coastal areas of the Western and Southern provinces and in Puttalam district in the morning and most other areas in the afternoon and night
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