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‘Organised defaulters’ may make bank loans harder for genuine businesses

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Dr. Nandalal Weerasinghe

By Sanath Nanayakkare

Officials of the Central Bank have to grapple with ‘growth versus inflation’ dynamics to determine Sri Lanka’s economic future in another challenging New Year which has just begun. In addition to that they have found another unenviable task in encountering vociferous opponents of the banking system’s parate execution which is apparently being enforced as a last resort.

This was evident during the Q& A session the media had with Central Bank Governor Dr. Nandalal Weerasinghe on Friday where the Bank released its first-ever Financial Stability Review after gaining independence from Sri Lanka’s elected officials.

“A handful of organized loan defaulters are engaged in a vociferous campaign these days to avoid repaying loans they have taken from the banking system. But the Central Bank has a duty to recover the depositors’ money which has been lent to them, or else, the banks may become reluctant to loan money to even good borrowers in the future”, Dr. Weerasinghe warned.

“The Central Bank’s view is that parate execution is more important and essential for the protection of depositors’ money than for the stability of the banking system. The banking system distributes deposit funds of the general public among businesses as loans to stimulate the economy. However, when one borrows money from that deposit base and not repay it, the depositor’s money is at risk,” he said.

The Governor pointed out that the entire banking system has a deposit base of Rs. 16 trillion and depositors’ money account for 81% of the banking system’s liabilities.

“Bank shareholders have only a stake of 7% in this deposit base. So if any borrowers say that the money they have borrowed can’t be repaid or shouldn’t be recovered under parate execution, it is an unjustifiable claim. Now we hear the voices of an organized group that have the capacity to afford formal media events and say their defaulted loans shouldn’t be recovered under parate execution. This is akin to telling the depositors that ‘we have borrowed your money but we can’t pay it back.” If the depositors agree to that, it’s justifiable.

But the depositors won’t agree to that. The depositors are a silent majority community and their voices are not heard. Parate execution is enforced only when borrowers default on their loans; it is not enforced on those who make suitable arrangements to repay their loans. When the banks can’t recoup its losses under parate execution; they would be reluctant to give loans in the future even if one provides a property as collateral for repayment. So, the Central Bank has a responsibility to recover the money that belongs to the general public. If anyone is trying to disrupt the process, it’s a violation of depositors’ rights,” he said.

The governor pointed out that mainly short term deposits are used in giving long term loans and in the past 11 months, parate execution has been enforced on 557 persons recovering Rs. 38 billion.

“At a glance, it appears to be a big sum of money. But that is only 0.4% of the total bank loan portfolio. At present Stage-3 impaired loans stand at 13% which is a sum of Rs.1.4 trillion. Out of Rs. 1.4 trillion worth impaired loans, Rs. 38 billion came from parate executions. This means only 2.7% has been recovered under parate executions. If the banking system finds it unable to keep the enforcement of parate execution in effect, it will be a great injustice to the depositors because their money is borrowed and not repaid. Also, it will be an injustice to potential genuine borrowers because banks will be reluctant to give them money on credit.”

“These days you hear the voice of defaulters who make statements against parate execution at media events they have organized. And you will only see the depositors come to the picture when they find their savings are used in messy transactions. ETI, Golden Key and The Finance are good examples for this where depositors finally grouped up to make their collective voice heard. So, if the savings of millions of innocent people are misapplied by a handful of people and if they band together to prevent parate execution from being enforced, I think it would be great injustice.”

“The economic crisis brought its consequences without sparing anyone; not only borrowers, depositors were affected too. When inflation was 70%, depositors got a maximum interest rate of about 25%. That is how borrowers had to pay 30% interest rate. The Central Bank has issued 8 circulars with effect to giving crisis-hit businesses necessary moratoriums, relief measures, spreading out repayments, SME loans from ADB etc. And if the borrowers still have any grievances against their respective banks, there is a separate unit at the Central Bank to discuss such issues and see if a particular bank is deviating from the given norms.”

“But if it is identified that someone is shirking repayments, it is our duty to recover that money on behalf of the depositors and taxpayers because in the event of a crisis in the banking system, it will need to be borne by taxpayers and depositors,” he said.

The Governor went on to defend the banks making a decent profit through the activity of deposit taking, deposit interest payments and lending money at market rates throughout a financial year while robustly supporting the economy.

“When a bank makes profits, it has more capital to give as loans. That is why Rs. 450 bn has been allocated by the Budget from taxpayers’ money to strengthen the capital position of the state banks”, he pointed out.

The Governor urged sections of the media to not only highlight the story of the loan defaulters but also to train their cameras at the depositors and taxpayers.

“Are taxpayers willing to pay more taxes to give relief to a handful of loan defaulters or are depositors willing to sacrifice their funds to give relief to loan defaulters? That is the fundamental question we have before us and the general public needs to be made aware of it,” the Governor said.



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Nestlé Lanka celebrates 120 years of ‘Good Food, Good Life’ in Lanka

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Nestlé Lanka Chairman and Managing Director Bernie Stefan (left) and Ruwan Welikala, Director – Corporate Affairs and Communications, provide an overview of Nestlé Lanka’s 120-year journey in Sri Lanka at a media briefing held on March 10 at Cinnamon Life – City of Dreams, Colombo. Pic by Nishan S. Priyantha

Nestlé Lanka Limited, the ‘Good Food, Good Life’ company, celebrates 120 years of operations in Sri Lanka this year. Since its founding in 1906, the company has grown into the nation’s leading food and beverage manufacturer, producing over 90% of its locally sold products in Sri Lanka. Guided by its purpose of enhancing quality of life for today and future generations, Nestlé Lanka has touched lives through nutrition, livelihoods, and sustainability.

Over the decades, the company has offered tastier and nutritious choices tailored to local needs, from birth to old age, with micronutrient-fortified products that promote healthier living. Iconic brands such as NESTOMALT and MILO further encourage active and healthy lifestyles through sports sponsorships.

Beyond products, Nestlé Lanka engages communities through partnerships with dairy and coconut farmers, supporting skills development, responsible sourcing, and local livelihoods. Its youth empowerment initiative, Nestlé Needs YOUth, strengthens employability, while collaborations with organisations like BConnected create inclusive work pathways for people with disabilities.

Sustainability is a core focus, with a commitment to achieve net-zero carbon emissions by 2050. Recent steps include a biomass boiler commissioned in 2024 and the use of 100% renewable electricity at the Kurunegala facility. Through these initiatives, Nestlé Lanka continues to deliver on its promise of enriching lives while safeguarding the planet.

Commenting on this milestone, Bernie Stefan, Chairman and Managing Director of Nestlé Lanka said, “Celebrating 120 years in Sri Lanka is a moment of immense pride for all of us at Nestlé. This milestone reflects not only the longevity of our business, but the trust generations of Sri Lankan families have placed in us and the strong partnerships we have built across the country. For over a century, we have been committed to Working Together for Good – contributing meaningfully to the Sri Lankan economy, supporting livelihoods, and positively impacting communities, while consistently providing tasty and nutritious products that consumers love. Through iconic brands such as NESTOMALT, MILO, MAGGI to name a few, we have been part of everyday moments in Sri Lankan homes, helping nourish families and support healthier, more active lifestyles. As we look ahead, we remain firmly committed to continuing this journey with purpose, responsibility and care, enriching Sri Lankan lives every single day.”

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Sampath Bank and Apartner Bring Digital Payments to Sri Lanka’s Growing Condominium Sector

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Chirath Samarasekara, Head of Card Centre at Sampath Bank, exchanges the partnership agreement with Deshan Dias Bandaranayake, Co-Founder and Chief Executive Officer of Apartner, Chaminda Samarajeewa, Manager – Merchant Relationships, Digital Products and Card Sales at Sampath Bank (1st from left), and Shehan Adikari, Co-Founder and Chief Operating Officer of Apartner (1st from right), look on.

Sri Lanka’s condominium landscape continues to expand at pace, reshaping urban living across the country, yet many residential communities still rely on manual payment methods that slow down collections, delay reconciliations and limit financial visibility for both residents and management corporations.

Responding to this growing gap, Sampath Bank PLC has partnered with Apartner (Pvt) Ltd to digitise condominium payments in Sri Lanka, introducing a secure, real-time payment and settlement framework designed to support smarter, more efficient apartment living. The partnership integrates Visa’s Cybersource payment gateway with Sampath Bank’s API Manager, enabling seamless digital payment collection alongside instant outward settlements and reconciliations.

Speaking on the collaboration, Chirath Samarasekara, Head of Card Centre at Sampath Bank, stated, “Condominium living is becoming a defining feature of modern Sri Lanka and the financial infrastructure that supports it must evolve accordingly. Through Visa’s Cybersource payment gateway and our API Manager, this partnership enables real-time settlements and reconciliations that bring greater transparency, control and predictability to condominium payments while offering residents a secure and convenient digital experience.”

Deshan Dias Bandaranayake, Co-Founder and Chief Executive Officer of Apartner, commented, “This partnership with Sampath Bank allows us to remove one of the biggest operational pain points faced by condominium communities. Real-time payment visibility and automated reconciliation give management corporations confidence in their cash flows while residents gain convenience, security and peace of mind through a platform built for everyday living.”

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A lifetime of tickets: Kalawana retiree preserves a 76-year long lottery trail

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Some of lotteries in Ekanayake’s collection

For many Sri Lankans, buying a lottery ticket is a daily ritual. Some do it out of habit; others try their luck from time to time. Morning crowds gathered around lottery kiosks across the country are testimony to the enduring appeal of the small slip of paper that promises fortune.

But in the quiet village of Dolahena in Kalawana lives a man whose relationship with the lottery stretches far beyond hope of a windfall.

At 88, retired postal worker E. M. D. Bandara Ekanayake has spent more than seven decades buying lottery tickets — and, more remarkably, preserving them. His collection, which dates back to the early years of organized lotteries in Sri Lanka, may well be one of the most extensive personal archives of lottery tickets in the country.

“I started buying lottery tickets in 1962, the year the National Lottery Board was established,” Bandara told the Sunday Island. “At that time a ticket cost only 50 cents, and the top prize was about one lakh of rupees.”

His fascination with lotteries, however, predates the National Lottery Board itself. Bandara recalls purchasing his first ticket in 1959 when a lottery was held in connection with an industrial exhibition.

“From then until today, I have been buying five tickets at a time,” he said. “For about 76 years I have continued this habit.”

Unlike most lottery buyers who discard their tickets once the draw is over, Bandara carefully preserved every ticket he purchased. As a result, he now possesses lottery tickets issued by both the National Lottery Board and the Development Lotteries Board from 1962 to the present.

“I don’t think anyone else has such a collection,” he said with a quiet smile.

Ironically, his decades-long participation has not brought him extraordinary winnings. “Apart from small prizes, the biggest amount I have ever won is Rs. 10,000,” he admitted.

Yet Bandara insists that winning has never been his primary motivation.

“I buy lottery tickets with great interest and enthusiasm, but not because I expect to win,” he said. “The lottery boards contribute a great deal to the development of this country. Funds raised through lotteries support education, health and other development work. I feel a deep sense of satisfaction knowing that I too contribute, even in a small way.”

His dedication to buying tickets has endured despite the difficulties he once faced in obtaining them.

“In the early days there were no lottery sales outlets in the Kalawana area,” Bandara recalled. “The only place we could buy them was at Sinnaiah Stores in Nivitigala. I used to travel by bus to buy the tickets and bring them back. Sometimes I would send someone else to buy them for me.”

Over time, lottery sales expanded to Kalawana itself. Bandara remembers that a trader named P. D. T. Lathpadura Mudalali began selling lottery tickets at the Ranasinghe Hotel, making it easier for locals like him to buy them.

E. M. D. Bandara Ekanayake

From then on, Bandara purchased his tickets locally, but the practice of carefully preserving them remained unchanged.

His passion for collecting does not stop with lottery tickets. Bandara has also maintained an extensive collection of newspapers over the years. Even bus tickets from his journeys have been preserved alongside his treasured lottery slips.

The unusual collection recently drew the attention of officials from the National Lottery Board, who visited Bandara’s home bearing gifts after learning about his decades-long dedication.

For Bandara, however, the recognition is secondary to a larger sense of purpose.

“I will continue buying lottery tickets as long as I live,” he said. “At the same time, I try to help others and engage in social service whenever I can.”

His commitment to community welfare is not merely rhetorical. Using his own funds, Bandara has already built a community hall for the benefit of residents in his village.

“I hope to continue doing social service in the future as well,” he said.

In an era when lotteries are often associated with dreams of instant wealth, Bandara’s story offers a different perspective — one of quiet dedication, civic-mindedness and personal discipline.

For him, the value of a lottery ticket lies not in the promise of riches but in the small contribution it makes towards the collective good.

And after 76 years, that belief remains unshaken.

By Upendra Priyankara Jathungama

 

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