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.
News
Showers about 100 mm are likely at some places in the Western, Sabaragamuwa, Central, Uva, Southern, North-western, Northern and North-central provinces and in Trincomalee district.
WEATHER FORECAST FOR 11 MAY 2026
Issued at 05.30 a.m. on 11 May 2026 by the Department of Meteorology
The low-level atmospheric disturbance in the vicinity of Sri Lanka is likely to develop into a low-pressure area around the next 36 hours. Therefore, the prevailing showery conditions over the island are expected to continue during the next few days.
Showers or thundershowers will occur at times in most parts of the island and Cloudy skies are expected, under the influence of the aforementioned system. Heavy showers about 100 mm are likely at some places in the Western, Sabaragamuwa, Central, Uva, Southern, North-western, Northern and North-central provinces and in Trincomalee district.
The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.
SJB MP Dayasiri Jayasekera has sought the intervention of the Inter-Parliamentary Union (IPU) to pressure the JVP-NPP government to respect the rights of the Opposition.
MP Jayasekera told The Island that they wouldn’t allow the NPP to suppress the truth regarding the theft of Treasury funds amounting to USD 2.5 million. He accused Speaker Dr. Jagath Wickremaratne of depriving the Opposition of its legitimate rights, at the behest of the government.
Jayasekera said that the Speaker’s conduct regarding the action taken against Deputy Secretary General of Parliament Chaminda Kularatne, too, had been brought to the notice of IPU and other international associations.
The text of MP Jayasekera’s letter to the Secretary general of IPU: “I respectfully submit this petition seeking the attention and intervention of the Inter-Parliamentary Union concerning a matter affecting parliamentary accountability, the rights of elected representatives, and the proper functioning of constitutional oversight within the Parliament of Sri Lanka.
On 06 May 2026, I Dayasiri Jayasekara MP submitted a formal request to the Hon. Speaker of Parliament seeking permission, under the Parliament (Powers and Privileges) Act No. 21 of 1953 and Standing Order 29(1), to raise a question of privilege regarding alleged constitutional and parliamentary violations by Mr. Harshana Suriyapperuma, Secretary to the Treasury of Sri Lanka.
The proposed privilege motion raised matters including:
1. Alleged violations of Articles 148, 149, and 150 of the Constitution of Sri Lanka concerning parliamentary control over public finance;
2. Alleged failure to report to Parliament concerning a controversial and unlawful transfer of approximately USD 2.5 million from the Treasury;
3. Alleged non-compliance with parliamentary committee procedures under the Standing Orders of Parliament;
4. Questions relating to constitutional eligibility under Article 91(1)(d)(xiii) of the Constitution concerning dual citizenship and qualification to sit and vote in Parliament;
5. A request that the matter be referred to the Parliamentary Ethics and Privileges Committee established under Standing Order 118.
Despite the seriousness of the constitutional and parliamentary issues raised, the Hon. Speaker declined permission for the privilege issue to be raised in Parliament.
It is respectfully submitted that this refusal has the effect of:
• Preventing an elected Member of Parliament from exercising his parliamentary oversight function;
• Restricting parliamentary scrutiny over matters involving public finance and constitutional accountability;
• Undermining the privileges of Members of Parliament to raise matters of urgent public importance;
• Limiting institutional transparency concerning allegations involving senior state officials.
The right of parliamentarians to raise questions of privilege and matters relating to constitutional governance is an essential component of parliamentary democracy and legislative independence. The refusal to permit even the presentation or preliminary consideration of such a matter raises serious concerns regarding parliamentary accountability mechanisms in Sri Lanka.
Accordingly, I respectfully request that the Inter-Parliamentary Union:
1.Take cognizance of this matter as one affecting the rights and functions of Members of Parliament;
2.Seek clarification from the relevant parliamentary authorities in Sri Lanka regarding the grounds upon which the privilege motion was disallowed;
3.Consider whether the refusal is compatible with internationally recognised principles of parliamentary democracy, accountability, and freedom of parliamentary speech;
4. Encourage the Parliament of Sri Lanka to ensure fair and transparent procedures governing parliamentary privilege motions and constitutional oversight.
I further request that this communication be placed before the appropriate committee or mechanism within the IPU dealing with the rights and duties of parliamentarians.”
UNP Vice President and Kandy District Leader, Navin Dissanayake, on Saturday, stressed that any proposed merger between the UNP and the SJB must be carried out formally rather than in an ad hoc manner.
Addressing a media briefing in Kandy, Dissanayake said a structured framework was essential to ensure the successful reunification of the two parties ahead of future elections.
“A formal mechanism must be established for the unification of the UNP and the SJB. This process cannot be confined to personal verbal assurances given to suit individual interests. We must build a strong framework to contest future elections as a united force,” he said.
He added that the UNP could only regain political strength by reuniting with factions that had broken away from the party.
Dissanayake also claimed that the Government would be compelled to hold Provincial Council elections amid mounting international and domestic pressure.
“India is exerting pressure to conduct these elections, while the people in the North are also demanding governance under the Provincial Council system. They are awaiting the polls,” he said.
Announcing his own political intentions, Dissanayake said he hoped to contest as the Chief Ministerial candidate for the Central Province at the next Provincial Council election.
“I intend to contest as the Chief Ministerial candidate for the Central Province. Having served as a Governor, I understand the extent of service that can be delivered to the people through a Provincial Council,” he said.
Recalling the history of constitutional devolution, Dissanayake said his late father, Gamini Dissanayake, had played a significant role in the introduction of the 13th Amendment to the Constitution of Sri Lanka.
by SK Samaranayake
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