The Hon. Chandana Sooriyaarachchi

¶ 01 Mr. Presiding Member, the Private Members’ Motion brought by the Hon. Rohana Bandara to establish a programme to ensure proper supervision of the co-operative rural banking system is very important. I wish to express views on it.

¶ 02 We know the present Government has had to correct many failures, destructive decisions and crimes committed under previous administrations and their political agents. We are taking necessary legal steps according to the law. In this context, the co-operative rural banking system is also a related subject.

¶ 03 I have direct experience from my electorate, Avissawella, in the Sabaragamuwa Hewa Gama area. There was a very strong co-operative enterprise with 24 rural banks, with nearly 100,000 depositors and around Rs. 920 million in deposits. By 2018, all 24 banks had to be closed. The root cause was wrong decisions by the then Boards of Directors. Under Section 40(1) of the Western Province Co-operative Societies Statute, if a board deposits its rural bank funds in another bank, such funds must be placed in a State bank. But funds were illegally placed in a private financial institution under political protection, and benefits were reportedly taken by those responsible. Over 100,000 depositors still suffer without access to their savings.

¶ 04 Therefore, a proper investigation is needed, and the co-operative rural bank system must be brought under strict regulation and supervision with new legal measures. Although individuals affiliated to the SLFP or UNP may have held positions then, those responsible must be held to account. Reforms are underway with new boards being appointed, and we expect these changes will stabilize the system. I clearly state that the Hon. Rohana Bandara’s proposal must be implemented.

¶ 05 We must take legal action against those whose decisions collapsed the system, destroyed depositor confidence, and misappropriated funds, and we must prepare plans to ensure proper regulation and management of the rural bank system.

¶ 06 Thank you.