The Hon. Dayasiri Jayasekara, Attorney-at-Law

¶ 01 Mr. Presiding Member, I support the valuable proposal by the Hon. Rohana Bandara. While serving in the North Western Province, I studied the rural bank system closely. It truly helped rural people, especially when leasing companies trapped the poor. Rural banks strengthened small entrepreneurs, provided credit, enabled women’s participation, and helped build new livelihoods.

¶ 02 In the North Western Province we launched “Jana Diriya,” working with over 26,000 women, strengthening rural banks not by merely giving loans but by proper training. However, due to poor continuation, some rural banks collapsed and some officers siphoned deposits. This is not about blaming SLFP, UNP or anyone; if we had a clear mechanism, theft would be far harder. That is precisely what the Hon. Bandara seeks: a robust framework to protect the system.

¶ 03 On interest for senior citizens: commercial banks pay 8% on fixed deposits and the Government tops up to 9.5–10% via the Central Bank. Rural banks are not receiving the Central Bank reimbursement for the top-up, so depositors are withdrawing funds from rural banks. Please include rural banks in this reimbursement so funds do not drain out.

¶ 04 We have thousands of co-operative rural banks employing over 50,000. They are key lenders to rural people. Given today’s lending environment and the Parate law, many avoid commercial banks. I request the Deputy Minister of Economic Development to extend the 1.5% interest subsidy for senior citizens to rural banks as well.

¶ 05 Further, there is an organized move that effectively drains money out of rural banks. We must counter it with a clear plan. Separately, removing the 3% processing margin from fuel stations and replacing it with Rs. 3.60 per litre has hurt co-operative fuel outlets; they now face liquidity stress, including paying about Rs. 8,000 per bowser load upfront.

¶ 06 In the North Western Province, there is also heavy political interference in co-operatives. Capable chairmen are being removed; 46 inquiries have been pushed at once. Such politicization must stop. Please also address the burden of 18% VAT on co-operative sales divisions. Unlike private retailers who can conceal turnover, co-operatives record everything formally and are compelled to pay the VAT, crippling their sales arms. I urge you to exempt co-operatives from this 18% VAT or provide relief; otherwise, their sales divisions will collapse.

¶ 07 Thank you.