Rs.125 billion written off as bad debts

11 May 2012 07:42 pm - 36 - {{hitsCtrl.values.hits}}

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A massive Rs.125 billion has been written off as bad debts by the two state banks during the past ten years, Parliament was informed yesterday. This was much higher than the government’s allocation for health, education and economic development sectors.

The government usually allocates amounts ranging from Rs.40 billion to Rs.75 billion for each of those sectors every year.

The Bank of Ceylon has written off Rs.116.5 billion while the People’s Bank has written off Rs.857 billion.

UNP MP Ravi Karunanayake tabled in Parliament two separate documents which had been sent to the parliamentary Committee on Public Enterprises (COPE) recently by officials of the two banks outlining their out standings and non-performing loans.

According to the letter send by the Bank of Ceylon Additional General Manager Rs.11.3 billion had been written off last year; Rs.12.6 billion in 2010; Rs.15.5 billion in 2009; Rs.13.8 billion in 2008; Rs.11.3 in 2007; Rs.13.6 billion in 2006; Rs.12.5 in 2005; Rs.12.3 billion in 2004; Rs.17.1 billion in 2003; Rs.19.9 billion in 2002 and Rs.21. 8 billion in 2001.

The People’s Bank had written off Rs.788 million in 2011; Rs.316 million in 2010; Rs.157 million in 2009 and Rs.787 million in 2008.

Mr. Karunanayake moving a private member’s motion asked the government to introduce a law to provide for the publishing of names of defaulters who had burrowed more than Rs.100 million each.

“In these instances, we are informed by the officials of these banks that politically influential people have defaulted payment of their loans in this manner. I know the government is always hunting people who have defaulted Rs.20,000 or Rs.30,000 borrowed for the agricultural activities. Yet, they keep silent on these influential people,” he said.

Mr. Karunanayake said at Lankaputhra Bank, the rate of non-performing loans was high as 50 per cent.

“The government spends only Rs.8.8 billion to give Samurdhi subsidies. Yet, they have written off loans worth Rs.11.4 given by the Bank of Ceylon to political henchmen,” he alleged.

Senior Minister D.E.W. Gunasekara said there were legal obligations that made it difficult to publish the names of defaulters. (KB & YP)

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Comments - 36

Wimal_Modawansa Saturday, 12 May 2012 06:05 AM

Jayawewa>Increase the taxes and recover from general public.Save the nation.

Yehiya Saturday, 12 May 2012 04:43 AM

Realy funny island in the world.

Renu Saturday, 12 May 2012 04:53 AM

These must be taken up someday when there is a change of Government and wrongdoers must be taken to task and PUNISHED

Renu Saturday, 12 May 2012 04:58 AM

People must demand that the list of defaulters must be published

solico Saturday, 12 May 2012 05:22 AM

everybody wants justice but no where to be found

solico Saturday, 12 May 2012 05:22 AM

list will start from MR

kapa Saturday, 12 May 2012 05:34 AM

@ Renu

Ravi K also in the list during 2001 UNP ruling time. If you look in to money he owes to airlines while he owned Rotten wanger freight company, that exceeds 20 million. UL and LT alsmost closed down cargo services cos of this.

charles. Saturday, 12 May 2012 05:41 AM

My account with the peoples bank is well over 25 years.
My salary goes direct to my account and this has been since the inseption.
I have a small fixed deposit with the same bank.
The bank refused to grant me a temporary over draft facility with out my sighning a colateral with the bank. the sum requested is only rupees 25000/=

Tuan Saturday, 12 May 2012 06:04 AM

Accountability for wrong doings can go scot-free in this life,but in the hereafter can not in the presence of our Creator.

rana Saturday, 12 May 2012 04:28 AM

How many Ministers, Govt MPs are in the list. Definitely the top 100 are them. Srilanka is the Miracle of the world.

Kalu Saturday, 12 May 2012 06:18 AM

No wonder these banks pay low interests to depositors.(hard earn money). what legal obligations; get it cleared and publish the list of defaulters. Depositors names at Golden Key was made available to public. Difficult to understand the logic. Another TFC-NSB like issue.

ranjith Saturday, 12 May 2012 06:36 AM

wikileaks-lanka is badly needed

Manu Saturday, 12 May 2012 11:34 AM

can we do the same also ??? if we take a mililon loan can we depit off ??? i think government has to name the culprit..other wise they will be the luckiest in the world.. loans with out payment..when we ask for loan many documents and some thing to keep as guarntee... is nothing for them... if they did not pay why cannot cover from the gurantee/or sell with thier assests.. or what ever.....

Woodman Saturday, 12 May 2012 11:40 AM

Who are the lucky people?
Surely politicians

Das Saturday, 12 May 2012 11:43 AM

In any other country, the entire management would have been sacked and only those with clean record reappionted.

nipuna Saturday, 12 May 2012 01:34 PM

What will happened to the culprits and the corrupt officers..?
All will be pardoned and the officers get promotions.....?
Very funny banana republic......?
NS

Nalaka Saturday, 12 May 2012 08:58 PM

Bring in the Interpol as many of these money could be in overseas accounts,overseas land, stock markets and buildings.

Nodrog Sunday, 13 May 2012 05:34 AM

Time to look for a new bank Charlie..

Calistus Jayatilleke Saturday, 12 May 2012 03:07 AM

It is high time these so called "legal obligations" are sorted out allowing for the publication of the names of these "honourable" thieves who plunder national assets as the ever-suffering general public have a right to know.

Ruhunu Kolla Saturday, 12 May 2012 12:21 AM

Miracle Of Asia!

MagodisThuma Saturday, 12 May 2012 12:28 AM

I have taken 2500Rs loan to buy a gas cylinder...bank is chasing behind me...!

Royalist Saturday, 12 May 2012 01:02 AM

Write offs... the writing is on the wall for all of us...

lankashantha Saturday, 12 May 2012 01:27 AM

Those peoples names must be published.

Christo Saturday, 12 May 2012 01:49 AM

So any one can borrow and default and live like kings with defaulted money, without fear of been exposed. I might consider it too rather than living such a hard life.

dhammika Saturday, 12 May 2012 02:07 AM

What a legal obligation!

Bigfoot Saturday, 12 May 2012 02:32 AM

It is a matter of time when the whole country will have to be written off or has it already happened.

Real peace Saturday, 12 May 2012 02:49 AM

The nation bleeds profusely.......

Ami Saturday, 12 May 2012 12:06 AM

Mis-management of Public funds at the highetst level ! What a massive amount went down the drain ! Hope regime is happy at last

Nodrog Saturday, 12 May 2012 03:13 AM

State bank money = our money!

Black Mamba Saturday, 12 May 2012 03:18 AM

How much of this amount is the Government's???

FLY Saturday, 12 May 2012 03:29 AM

i wonder if there is a profit in this two banks. also govrnment should publish names those culprits to everyone to know. i am sure 100 biggest culprits are either politicians or thier supporters

union Saturday, 12 May 2012 03:35 AM

Oh God! Please save us from these politicians.

Wimal_Modawansa Saturday, 12 May 2012 03:42 AM

Jayawewa>Increase the taxes and recover from general public.Save the nation.

DireStraits Saturday, 12 May 2012 03:53 AM

Wow, mahajana sampatha literally. I am applying for a loan NOW!

Imran Hussein Saturday, 12 May 2012 03:58 AM

No words to express the shock. Is it that simple to write of such a massive amount as bad debts? What the audit report says past ten years.

MIgara Saturday, 12 May 2012 03:59 AM

How many "Bulath Vita's" is this Wimaloooo????
Maga Naguma.."Janathawata belle wala la ganuma"...Shameless politics from top to bottom..

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Rs.125 billion written off as bad debts

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