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Bank Interest reduction incurring Rs.75000 million loss by Govt. is an election gundu - Ravi

(Lanka-e-News 30.Oct.2009 1.00PM) Addressing a media meeting yesterday(29), said the Govt. which is hard put to present a budget this year reducing Bank rates of interest suddenly and immediately is an election gundu. By this action, the State Banks will lose Rs.75000 million, while the two State Commercial Banks alone will lose Rs. 57000 million, he added.

Reduction of the interest in the current desperate economic situation in the country, Ravi Karunanayake explained is with an ulterior motive of the Govt. UNP has always been for reduction of the exorbitant rates of interest . But , the Govt. reducing the interest in the present economic climate will only aggravate the economic problems. But, the Govt. regardless of these hard facts has resorted to this action because of the impending elections .Karunanayake guaranteed , as the elections are over , and if this Govt. is in power , the rates of interest will shoot up to 25 % per annum.

The Govt. which had all along stated that reduction of interest rates will be detrimental to the economy has now found it fit to bring it down to 8 to 12 % .. The State Banks will incur a loss of RS. 75000 million thereby.. These losses will have to be recouped from the already overburdened masses through tax, tariff and cost of living hikes. The Govt. has no other alternative, he pointed out. From every liter of fuel , the Govt. is extracting Rs. 83/- as taxes ruthlessly from the people .

This being an election gundu , the Govt. has n’t thought of the losses the Banks will face. This is a maneuver of the Govt. to help its Mudalalis at the expense of the country’s interests , while not heeding the workers’ demands for salary increases; making cut backs on Samurdhi recipients; not providing jobs to so many unemployment graduates and strangulating the struggling masses by endless taxation and other burdens. Minister Miathripala Sirisena too had warned the people not to expect price reductions on consumer items from the Govt. If he does not want people to expect price reduction , what does he want them to expect ; is it Govt. corruption ? he asked.

Just because the Govt. reduced the interest , can the people get loans easily from the Banks ?, he asked.

The Govt. which is bankrupt in every sphere is also bankrupt of solutions to the nation’s problems. Only those who flatter the Govt. in all its bungles, corruption and malpractices are patriots. Others who expose them are traitors, according to Govt's theories. The Govt. has implemented so far 11 of 12 proposals of the UNP budget. In the circumstances, if the UNP gets the opportunity to introduce the next budget , people will be lucky , he concluded.

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I think interest reduction came finally , to face the present situation.Ravi karunanayaka is always backing business community and only for this issue he has pointed a negative idea.Today we all know interest chargers in Sri Lanka is very high and this is the one main reason market did not activate.I think without reducing the rates even bankers will not be able to collect and lend money. People's buying power should be increased .If they did not reduce even at this last stage our economy will be copmletly collapse and all the economic activities will captured by foreigners. We know UNP is always maintain a correct interest rates when they were in power. Therefore this may not only take as a "Gundu", this has been taken for the servival of the government and banks.Ravi, please support this move and we appreciate your struggle against the malpractices of the government. If the government took this action six months ago our economy will be in a sound position. Therefore Ravi should blame the government , not taking this action one year before. Because whole world is faced the crisis period taking action to improve the local markets. But our government followed the oposite side. That was the mistake.Ravi is talking about the lose of banks. They are loosing some small percentage from their huge profit margin. Pease think and talk about the ordinaly people of this country as you did past.

Posted By: John Wijesthilaka

According to my knowledge, this is not a 'chanda gundu'. The country has successfully controlled the the waving inflation, consequently there is no any loss as showing in numbers. In this case the numbers are delusive. You are claiming as a 'mudalali'. It is famous all 'mudalali-s' increase the prices immediately, whenever it is announced by the government. But after having reduced the prices they claim still selling old stocks. This monetary issue is not a lose. The bank owners and share holders doesn't like to lose their over profits. (According to my point of view} If this is a 'chanda gundu' you've been trapped in it as opposition, because the people like to pay less. According to your speech government must not reduce the interest rates! That is your style, the listeners can never be misled by such a statement, n relevant to this issue, as you always do.

Posted By: A. Dhammodaya