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Ministers of Justice and Health on collision course with association of banks

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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.



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No child should be deprived of vocational or higher education due to poverty – PM

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Prime Minister Dr. Harini Amarasuriya stated that all government strategic plans must be formulated in a manner that ensures no child in the country is deprived of vocational education or any other educational opportunity due to economic hardship.

The Prime Minister made these remarks while addressing a workshop on budget formulation and strategic planning of institutions affiliated with the vocational education sector, held on  29th and 30th of January 2026 at the Grand Monarch.

The workshop was organized with the participation of heads and senior officials of nine institutions, including two universities affiliated with the vocational education sector.

The Prime Minister pointed out that it is essential to align the development plans of key institutions and the affiliated institutions with the National Economic Development Plan.

The Prime Minister stated that while educational institutions produce individuals with vocational knowledge, reforms must also nurture compassion, empathy, care for others, and ethical values. The Prime Minister noted that the objective of this initiative is to nurture professionals enriched by humanity.

She further emphasized that it is the responsibility of the government to further expand pathways for children who are experiencing economical disadvantages to access vocational education and secure their future.

Attention was also drawn to the sectors of AI revolution and the future of vocational education. The Prime Minister observed that there is still no comprehensive global understanding of the changes taking place in the world of work and vocational fields due to artificial intelligence (AI). She stressed that integrating vocational education into the mainstream education process through educational reforms is an urgent necessity at this time.

The revolution brought about by AI technology is often driven by profit. Just as we were exploited during past industrial revolutions, we must ensure that we are not left behind or marginalized in this revolution. We must not merely confine ourselves to a data center.

The Prime Minister highlighted that while teaching and learning activities can be carried out online, the impact of technology is limited in professions involving human care and compassion, such as childcare and caregiving services underscoring the importance of developing soft skills and adopting a human-centered approach.

It was discussed that the flexible pathways should be created to enable a student to progress continuously through vocational education up to doctoral level, as well as to re-enter education while being employed (lateral entry). While ensuring such flexibility in the system, maintaining high standards and quality in education was highlighted as essential to ensuring credibility.

The event was attended by the Deputy Minister of Education and Higher Education Dr. Madhura Senevirathna, Deputy Minister of Vocational Education Nalin Hewage, Secretary to the Ministry of Education Nalaka Kaluwewa, Vice Chancellor of the University of Vocational Technology Professor Prasanna Premadasa, Vice Chancellor of the Ocean University Professor Nalin Rathnayake, Chairman of NIBM Dr. G. Thantirigama, Director General D.M.A. Kulasooriya, and several other officials.

(Prime Minister’s Media Division)

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National Assessment and Policy Review: The impact of social media on children

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Deputy Minister of Digital Economy, Eranga Weeraratne, stated that the Ministry of Education, the Ministry of Women and Child Affairs and the Ministry of Digital Economy are planning to initiate a national assessment and policy review on the impact of social media on children.

The Deputy Minister emphasized that the initiative is expected to be advanced by giving due consideration to the insights of experts across all relevant fields, including child protection, education, health, mental health, cyber security, law and research, as well as by listening to the voices of civil society and youth.

Full statement made by Deputy Minister, Eranga Weeraratne.

“Many parents in Sri Lanka today face the challenge of understanding the impact of social media on their children and determining what measures they should take to ensure their safety. The solution is not to restrict children’s access to technology. Social media offers numerous benefits, including educational opportunities, the development of creative skills and improved communication. However, there is also a reality we must acknowledge. The online environment can often be unsafe, overwhelming and psychologically stressful for children. The resulting harm can negatively affect a child’s sleep, education, friendships and overall mental well-being. In some cases, excessive engagement with social media becomes difficult to control. Attempts to prevent such overuse may sometimes lead to conflicts, anger, or harsh disciplinary measures, which further impact learning and mental health. Consequently, children may experience stress, diminished self-confidence and emotional distress.

Online cyber bullying is another major concern. Additionally, children are often exposed to age-inappropriate content, including violent, sexual, or otherwise harmful material. There have been cases where children repeatedly engage with such harmful content, becoming increasingly absorbed in it. Some online games also present situations that encourage children to engage in disruptive or unsafe behaviour.

In extreme cases, such engagement has even led children to put their lives at risk. For this reason, ensuring the online safety of children has become a national priority in many countries. Our approach, likewise, must be guided by three fundamental principles.

First, the safety of children is paramount. This remains a non-negotiable policy of the government. Second, our actions must be based on evidence and research. We never proceed based on assumptions. Third, while safeguarding rights and privacy, our goal is to minimize excessive surveillance. Striking a balance between rights, safety and innovation is our primary objective.

Many countries around the world are already taking measures in this regard. It has become a timely necessity for us to carefully study these experiences, adapt them to our context and develop a comprehensive programme to protect our children. As a first step, we hope to initiate a national assessment and policy review on the impact of social media on children, in consultation with the Ministry of Education and the Ministry of Women and Child Affairs.”

Experts in fields such as child protection, education, health, mental health, cyber security, law and research, along with the voices of civil society and youth, must be engaged in this effort. This is not a challenge that the government can address alone. Parents, teachers and children themselves all need to participate collaboratively. Through this approach, we can create an environment where our children can make full use of technology safely and responsibly.

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Public officials must clearly understand public expectations against corruption and fraud – Secretary to the President

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In line with the Government’s programme to build a clean, transparent and corruption-free public service, a workshop to brief heads of 250 state institutions that have been instructed to establish Internal Affairs Units was held on Thursday  (29) at the auditorium of the Sri Lanka Foundation Institute, under the patronage of Secretary to the President, Dr. Nandika Sanath Kumanayake.

As the first phase of this programme, Internal Affairs Units were previously established in 106 state institutions and the relevant officers were trained accordingly. As part of the second phase, instructions have been issued to establish Internal Affairs Units in an additional 250 state institutions. Accordingly, this workshop was organised by Presidential Secretariat, with the assistance of the Clean Sri Lanka Programme.

Although Sri Lanka continues to maintain relatively high rankings in sectors such as education and healthcare, Secretary to the President, Dr. Nandika Sanath Kumanayake noted that the country is ranked 121st in the 2024 Corruption Perceptions Index, a position that could adversely affect its overall standing in other key sectors.

Addressing the gathering, the Secretary to the President stated that while the primary slogan of the recent public uprising was against the corrupt politics, the allegations were directed not only at corrupt politicians but also at corrupt public officials. He emphasised that the public uprising occurred at a time when the country had become economically bankrupt and its adverse consequences were being directly felt by the people.

He further observed that such public uprisings are not sudden events, but rather the culmination of a prolonged and systematic process, driven by public frustration and the erosion of trust in governance.

Further addressing the workshop, Secretary to the President emphasised that public uprisings should not be underestimated, noting that they represent a powerful expression of public will.

He stated that it is essential for public officials, as well as politicians, to have a clear understanding of public aspirations and public sentiment. As public servants, he stressed, there is an obligation to deliver a clean, transparent and accountable public service to the people.

Accordingly, he explained that a structured programme has been initiated to strengthen the integrity of public service delivery. The establishment of Internal Affairs Units forms a key component of this initiative, aimed at ensuring greater transparency and accountability within state institutions.

Dr. Kumanayake further noted that public officials must remain mindful of upholding ethical standards while performing their duties, as strengthening individual integrity can contribute to transforming the broader culture of corruption within the public sector.

He highlighted that Internal Affairs Units can be viewed both as a mechanism for fostering a culture of integrity within the public service and as a platform that enables the public to raise concerns regarding the conduct of public officials, thereby strengthening accountability and public trust.

At the event, Additional Secretary to the President, Ms. Chandima Wickramasinghe and Senior Lecturer at the University of Kelaniya,  Tharindu Dhananjaya Weerasinghe delivered keynote presentations.

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