Loan issue gets diplomatic

6 March 2011 07:30 pm - 18 - {{hitsCtrl.values.hits}}

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By Kelum Bandara

Non-repayment of loans taken from the State Bank of India by teachers and principals would be brought to the notice of the President unless settled by March 15, Assistant Indian High Commissioner R.K. Misra had warned the Central Province Chief Minister.

Teachers said that this was an overstepping of diplomatic mandate by Indian authorities.
General Secretary of the Ceylon Teachers Services Union Mahinda Jayasignhe said that diplomatic intervention was totally unnecessary in such banking transactions.

“That is up to the bank and its customers to deal with. There is a mechanism for that,” he said.

According to the letter sent by Mr. Misra to Central Province Chief Minister Sarath Ekanayake, the Bank had informed the Assistant High Commission of India in Kandy about the defaulting of loans by the   principals and teachers in three schools in the province.

Loans had been sanctioned by the bank’s branch in Kandy during the period between 2006 and 2008 for teachers and principals of 30 schools to be recovered directly from their salaries.

There had also been a condition that these salaries should be deposited with the Bank.
However, the Assistant High Commissioner informed the Chief Minister that these teachers and principals concerned had not adhered to these conditions.

The names of schools and their principals who have allegedly dodged the repayment of their loans have been mentioned in the letter. Also, the name of another principal who has recently settled the loan after defaulting for over a year has also been brought to the notice of the Chief Minister.

“It is also understood that the principals of these schools are instigating other teachers also not to repay the loan. They have misbehaved with the recovery officer of the bank, who is a retired colonel of Sri Lankan Army, mentioning that they have political connection and nothing would happen to them if they do not repay the loan,” Mr. Misra had said in writing.

The loan had been sanctioned for 600 teachers of 30 schools. It has now been suspended because of this issue.
While requesting the Chief Minister to instruct school authorities to settle these loans, Mr. Misra has vowed to take up the issue with the President otherwise. Also, he has copied his letter to Central Province Governor Tikiri Kobbekaduwa and the Deputy High Commissioner of India in Colombo.

The State Bank of India recently opened up another branch in Jaffna where they have a consul general’s office.

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Comments - 18

lankaman Monday, 07 March 2011 09:06 AM

he he...this is a real possibility considering the paltry indian salaries

idiag desmond Thursday, 23 June 2011 04:21 PM

do you need a loan if yes contact us via email [email protected]

Wimal_Modawansa Tuesday, 08 March 2011 03:08 AM

Thank you very much for explaqining me the difference between loan and a grant.But in Sri Lanka loans granted by State Banks are in fact grants.Political affliates don't have to pay back.

Pedro Monday, 07 March 2011 05:37 PM

It is totally normal for any country that Government offices help each other. Embassies usually also support even private companies when these are being harrassed by governments or corrupt people connected with the Government, as in this case.

Pedro Monday, 07 March 2011 05:33 PM

Banks need to use any possible option to recover the loans. You do not understand that those not repaying their loans increase the interest for everyone else. One day, honest citizens who need a loan urgently can not go to a bank anymore but must see loan sharks instead. Those taking loans without intending to pay them back are the real crooks.

hiru Monday, 07 March 2011 04:54 PM

it will get way more diplomatic when china starts demanding that Lanka pay back the loans from the Kings' era in 5 years!

Simple Simon Monday, 07 March 2011 11:52 AM

Defaulters: Non payment of a loan taken is not correct.......
State Bank of India: The president of Sri Lanka has more productive things to do... Please follow the proper mechanism to recover the past due loans......

peaceforall Monday, 07 March 2011 10:28 AM

Wimal, that is why it is called a loan and not a grant!

srinath.gunaratne Monday, 07 March 2011 10:15 AM

These Indians are crazy

Powerless Sunday, 06 March 2011 02:25 PM

Why not India forgive these loans, as a good neighbour and one who need Sri Lanka....

I wonder why they opened the office in Jaffna?????????

saman Monday, 07 March 2011 06:31 AM

let them even go to IMF ! this is not professional banking . What I know of simple banking is if there is a dispute take the matter to the courts !

Sanj Monday, 07 March 2011 05:49 AM

is Assistant Indian High Commissioner working for State Bank of India?

Lal Monday, 07 March 2011 05:24 AM

Is he having shares in the bank? This man should be expelled from Sri Lanka for overstepping.

lankaputha Monday, 07 March 2011 03:32 AM

Why is a Indian commisioner giving orders to government offices with out using the proper channels. Is this a sign that Sri Lanka has become state of INdia

lankaman Monday, 07 March 2011 03:25 AM

if the bank gave personal loans, they are responsible for the consequences. it seems the indians are happy as long as they make profit, but when defrauding is done, they use dirty tactics. we should ask these 3rd class indian shops to pack up and get lost and never to come back

Wimal_Modawansa Monday, 07 March 2011 03:14 AM

I was under the impression that any loans taken from State Banks including the State Bank of India are grants and need not be paid back.
Why are they asking for it back???

Murshid Sunday, 06 March 2011 02:50 PM

What if All the other foreign banks also apply pressure??? Accordingly only local bank loans can be defaulted. Where is Central Bank, are they sleeping.

Yehiya-Doha Sunday, 06 March 2011 02:38 PM

I got to know some force use to collect the payment.

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Loan issue gets diplomatic

Comments - 18

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