The government is planning to privatise a state bank, JVP MP, Bimal Rathnayake says.
He said that in May the East Container Terminal of the Colombo South Harbour had been given to India and Japan. “In June they have started selling Pelawatta and Sevanagala Sugar factories. Now, the People’s Bank is going to be privatised”
The People’s Bank, a vital institution in the financial sector, funded a number of government projects, the MP said, stressing the need for thwarting government efforts to privatise it.
“Having strong state banks are vital for an economy and a lot of countries have understood this after the 1997 Asian financial crisis and the 2008 US recession. Look at Sri Lanka now, when the tourism sector is suffering after the April 21 Easter Sunday attacks it is the state banks that stepped in with assistance. Who funds Enterprise Sri Lanka project that government boasts about? State banks. If they are gone the government will be crippled.”
(Source: The Island)