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SJB says a state bank on verge of default

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by Saman Indrajith

SJB Colombo District MP Dr. Harsha de Silva told Parliament yesterday that a state bank was on the verge of default.

Participating in the debate on the Value Added Tax (Amendment) Bill, to increase the tax on financial services from 15 to 18 per cent, the MP said that he had been informed that a state bank was on the verge of default, and added that the House should look into the matter immediately.

“Three months ago I warned that they were involved in the Buy-Sell-Swap scheme. There was a rule that the dollar could NOT be sold above Rs. 200,” he said, adding as a result banks had to purchase dollars on a negative premium.

The MP said that State Banks had purchased dollars for Rs. 200 promising to sell them back in three months for a mere Rs.185, adding that the move to purchase on a negative premium would result in the collapse of the entire banking system.

“If what is happening is true, it is the beginning of a disaster,” he said, adding that it was the people’s money that was placed in a crisis situation.

Dr. De Silva demanded to know the meaning of the existence of parliament if Ministers were not present to respond to the concerns of the members of the house.

The Finance Minister had not been seen in Parliament for three months, and the Governor of the Central Bank had also disregarded the notices given by Parliament, de Silva said, noting that the Central Bank Governor and the Monetary Board had been instructed by the Committee on Public Finance to appear before the committee to discuss the VAT increases, but they had disregarded the notice. “This is an insult to Parliament,” MP Dr De Silva said.

He said Parliament was Supreme when it came to any democratic matter and Public Finance.

The Colombo District MP found fault with the Central Bank Governor and the Monetary Board comprising Rani Jayamaha, Samantha Kumarasinghe, and Sanjeewa Jayawardena, PC for their failure to make an appearance before the Committee on Public Finance.

“The failure of Nivard Cabraal and his group to be present at the Committee on Public Finance is a blatant disregard of parliamentary traditions. No one has a right to do that. If that is the case, why do we need a parliament?”



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Lanka discovers largest groundwater source

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The National Water Supply and Drainage Board (NWSDB) on Friday said the largest groundwater source discovered in Sri Lanka so far had been identified during tube-well drilling near the Pitabeddara Police Station.

Indrajith Gamage, geologist in charge of the Southern Province, said the source recorded a continuous flow of about 10,000 litres (10 cubic metres) per minute, marking the first instance in the country where a groundwater source of that magnitude had been found.

He noted that the previous largest groundwater source was discovered in the Madhu area, which recorded a flow of about 7,000 litres per minute.

According to the NWSDB, the tube well was drilled following geological studies of rock layers and the identification of underground water through fractures in rock strata using specialised technical instruments.

The Board said steps would be taken to distribute water from the newly discovered source to residents facing shortages in Pitabeddara, Morawaka and surrounding areas.

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Lanka’s commercial legacy preserved in National Archives

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CCC Chairperson Krishan Balendra hands over the earliest dated record to National Archives Department Director General Dr. Nadeera Rupesinghe

The Ceylon Chamber of Commerce has formally handed over its historical records to the National Archives Department, entrusting over a century of the nation’s commercial history to the country’s official custodians of heritage.

The archive, spanning from the CCC’s founding in 1839 to 1973, includes correspondence, meeting minutes, reports, ledgers, and publications that chronicle the development of trade, enterprise, and industry in Sri Lanka. Together, the records provide a rare and detailed account of the island’s economic evolution and the role of its business community in shaping national progress.

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Bodies of 84 Iranian sailors flown home

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The Ministry of Defence said on Friday (13) that arrangements had been made to repatriate to Iran the bodies of 84 sailors who died aboard the IRIS Dena, which sank in the southern seas off Sri Lanka.

A special aircraft carrying the bodies departed from Mattala Rajapaksa International Airport on Friday, the Ministry said, adding that the repatriation was carried out in coordination with the Embassy of Iran in Sri Lanka.

The remains had been kept in two mobile cold-storage units at the Galle National Hospital before being transported to Mattala by lorry following a court order. Forty-five bodies were moved in the morning, while the remaining 39 were transported later in the day.

Earlier this month, the Iranian naval vessel suffered an incident about 40 nautical miles off Port of Galle while carrying around 180 personnel. Thirty-five rescued sailors were admitted to the Karapitiya Teaching Hospital, while 84 bodies were subsequently recovered.

Following the incident, Pete Hegseth confirmed that the Iranian vessel had been sunk in international waters by a torpedo fired from a submarine of the United States Navy.

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