Hon. R.M. Jayawardhana - Deputy Minister of Trade, Commerce and Food Security

¶ 01 Hon. Speaker, on behalf of the Minister, I reply:

¶ 02 (a)(i) Under the 13th Amendment, responsibility over Co-operative Rural Banks rests with Provincial Councils. Accordingly, under Provincial Statutes and the Co-operative Societies Acts, the Provincial Departments of Co-operative Development undertake: - Audits - Inspections - Investigations - Irregularities detection and corrective action - Supervision of routine operations and examinations of CRBs

¶ 03 CRBs function as financial arms of various service co-operative societies established at provincial level.

¶ 04 Further, by Cabinet Decision dated 26.04.2013 (Cabinet Paper No. 13/0409/540/005) “Establishing a mechanism to regulate Co-operative Rural Banks and Thrift and Credit Co-operative Societies,” a National Committee for Regulation of Co-operative Banks was established to guide all Provinces via the Central Government Department of Co-operative Development—issuing policy decisions, necessary guidelines, and circulars.

¶ 05 Additionally, a Committee appointed by Cabinet (Ref. AMP/25/0123/817/006 of 10.02.2025) to recommend restructuring of the co-operative network will provide recommendations on reforms for CRBs; the Central Department will issue guidance accordingly.

¶ 06 (a)(ii) Yes.

¶ 07 (a)(iii) The detailed list of numbers audited year-by-year from 2015 to date is extensive and has been placed in the Library.

¶ 08 (a)(iv) Due to delays and inadequacies in audits of CRBs affiliated to various co-operative societies, detection of frauds has been delayed; large-scale financial misconduct has occurred in some instances.

¶ 09 (a)(v) We have discussed with all Provincial Departments of Co-operative Development and issued instructions to update and regularize audits annually and to strengthen supervisory mechanisms.

¶ 10 (b) Not applicable.