The Hon. Ravi Karunanayake

¶ 01 Hon. Presiding Member, thank you for the opportunity.

¶ 02 I speak drawing on 28 years of parliamentary experience. While the intent behind amending Standing Orders may be good, the method proposed is not optimal. Under existing Standing Orders, COPE and COPA can already act within the constitutional fiscal powers of Parliament (Articles 148–150). Traditionally, after Auditor-General reports, matters proceed via the AG’s Department or CIABOC.

¶ 03 The Opposition supports this proposal as moving matters forward, but I submit the better route is to correct existing Standing Orders to expedite action rather than create a potentially problematic process. For instance, the PAC chaired by Hon. Kabir Hashim directed matters on reported losses at the SLTB; yet I doubt sufficient momentum followed from CID. The point is to make the system work effectively.

¶ 04 Then to a matter of urgent public importance affecting government servants. Today, public officers’ discretionary powers to act have been chilled. They face queries from the Auditor-General, CIABOC, Police and CID, while also required to implement AR/FR, ministerial directions, and court orders. As a result, many prefer inaction to avoid risk. While IMF/World Bank recommendations are useful, we must adapt them to Sri Lankan realities—do not transplant models uncritically.

¶ 05 Now, on the Central Bank and banking sector. I will not target any specific bank or jeopardize stability. My intention is to strengthen the Central Bank’s supervision. NDB’s Chairman Mr. Sriyan Cooray and CEO Mr. Kelum Edirisinghe reported to the SEC an initial fraud of Rs. 380 million which by Monday had escalated to Rs. 13.2 billion. This requires urgent attention for the sake of the sector. The Central Bank’s responses before the Committee on Public Finance today were insufficient and lacking ownership. Recall prior episodes—Pramuka, Seylan—and the sudden debt default on 12 April 2022 after assurances to the contrary a week before. The Central Bank now says it cannot answer MPs to protect depositors. I seek protection of the entire sector and economy.

¶ 06 Where are the oversight and audit committees? Who is the external auditor? For four to five years the Central Bank has had online supervision purportedly to scrutinize institutions in real time. Yet breaches occurred. The IMF’s 2023 Governance Diagnostic also flags weaknesses in internal bank supervision. Ensure the sector’s safety; do not let media sensationalize—this concerns one bank that should be commended for disclosure. My focus is the Central Bank’s supervision. I table the AGM/financial report pages.

¶ 07 [Time indication]

¶ 08 Given limited time, I ask: what has the CBSL’s Bank Supervision Department and internal auditors done? This seems to have been swept under the carpet. When queried, CBSL officials declined to divulge details. That shields incompetence. I ask the senior-most Minister here, Hon. Bimal Rathnayake, to look into this. My concern is the economy, not partisan politics.

¶ 09 Hon. Eranga Weeraratne is here: please look into the reported cyberattack at Cargills Bank. Also, the Sampath Bank matter—its forensic department has indicated document forgery. I seek permission to table and have these documents printed in the Hansard.

¶ 10 I will not labour the point. Please take this to the Cabinet. We need to strengthen all banks’ balance sheets and the CBSL’s Bank Supervision Department; if it cannot be strengthened, replace it with a better system.

¶ 11 Finally, having met the IMF team last week, we told them: they focus on revenue, the Central Bank on the rupee. Let us, together, strengthen the banking system and economy, expose incompetence at the Central Bank, and fix the system.

¶ 12 Thank you.