Opposition Leader Sajith Premadasa has urged the government to reveal the identities of the initial ten individuals or institutions that secured substantial loans from the Bank of Ceylon and People’s Bank, defaulted on repayment, and whether any decisions were made to forgive their loans or interests.
In a query raised under Standing Order 27(2), Premadasa disclosed that a specific private institution had acquired a loan of Rs. 7 billion from both state banks using the same security. He expressed concern over doubts among the public regarding the effective recovery of loans granted to entities with substantial borrowings.
Highlighting the importance of loan recovery for the financial stability of banks, Premadasa emphasized, “The main income of a bank is the interest charged on loans. The bank will run into a liquidity crisis if the loans given to large-scale borrowers are not recovered.”
He further noted the disparity in treatment, citing instances where powerful individuals, major industrialists, and companies seemed to receive preferential treatment, while micro, small, and medium-scale businessmen faced property auctions under Parate law for defaulting on loans.
