Sat, 28 May 2022 Today's Paper

Finance Ministry rubbishes People’s Bank privatization claims

4 September 2019 12:01 am - 0     - {{hitsCtrl.values.hits}}

A A A

  • Says amendments to People’s Bank Act aimed at increasing the bank’s capital base
  • Stresses privatization allegations baseless and politically-motivated


The Finance Ministry yesterday emphasized that the proposed amendments to the People’s Bank Act are not aimed at privatizing the State-owned bank, and rubbished claims made otherwise as baseless and politically-motivated.


“The only objectives are to increase the authorized share capital of People’s Bank and to enable the bank to issue debentures without the additional requirement of obtaining a Treasury guarantee,” a Finance Ministry


statement said.  It further pointed out that as per Section 13 of People’s Bank Act 29 of 1961, the ultimate ownership of People’s Bank vests with the government
of Sri Lanka. 


“Its responsibility lies with the Secretary to the General Treasury. People’s Bank Act clearly states that People’s Bank shares cannot be sold to any party other than cooperative societies or to the Secretary to the General Treasury.” 


The Finance Ministry stressed that Section 13 has not been included in the proposed amendment bill, and the amendments only seek to amend Sections 12, 20, 21 and 43 of People’s Bank Act. 


With the proposed amendments, the government expects to increase People’s Bank’s authorized capital to Rs.50 billion from Rs.1 billion, enabling the bank to issue debentures without the additional requirement of obtaining a Treasury guarantee.

 

All other State banks issue debentures without being backed by Treasury guarantees. 


The Finance Ministry pointed out that according to the Parliamentary Acts which established Bank of Ceylon and other State banks, there is a mechanism as well as permission for these State banks to issue debentures to fulfill their regulatory requirements. 


The ministry reiterated that after the People’s Bank Act has been amended, there is no opportunity whatsoever to convert any issued debentures to the share capital because Section 13 of People’s Bank Act does not permit such conversions.  The People’s Bank (Amendment) Bill is expected to be presented to Parliament for a vote tomorrow.

 

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Rashini Ready to Fight Cancer, but needs help

Sri Lanka is officially bankrupt and on the precipice of starvation. Fuel que

Student’s basic right to education trampled due to ‘hair issue’

Education is a fundamental right guaranteed by the UN Charter and the Constit

Sajith will lead SL soon but this time he failed in his decision making - Harin

Tourism Minister and SJB MP Harin Fernando has come out strong on his decisio

Shocking inside stories of the sugar scam

In the backdrop of former Finance Minister Ali Sabry’s proposed plan to inc