- MP Ranawaka fingers fmr. & incumbent ministers & govt. business associates for bad debt, further claims Rs. 1,000 b tax concessions to business folk
Opposition Parliamentarian and Parliamentary Committee on Ways and Means Chairperson Patali Champika Ranawaka alleged that several individuals including former and current ministers and State ministers, and businessmen friendly to politicians have defaulted on loan payments of more than Rs. 650 billion to two State-owned banks.
Speaking to The Daily Morning, he said that ordinary people have had to face various difficulties in dealing with banks due to such defaults. “When an ordinary person goes to a bank today, they can't obtain a loan. Are loans available at the interest rates that the Central Bank Governor says they are? No. Why? Because banks are burdened with over Rs. 650 billion in bad debts. A large number of individuals including former and current ministers and State ministers have defaulted on loan payments in this manner.”
Claiming that more than 60% of people have deposited less than Rs. 5,000 in banks, he said that it is unjustifiable for that group to be burdened in the name of economic reforms. “It is good that President Ranil Wickremesinghe ended the era of long queues and made some economic recovery. However, it could have been done differently without placing a heavy burden on ordinary people. The focus should be on dealing with powerful individuals who evade the law,” he said.
Speaking further, Ranawaka claimed that over Rs. 1,000 billion in tax concessions have been given to the country's top businessmen, adding that there would be no need to impose the taxes that were implemented early this year which are expected to generate a revenue of Rs. 600 billion if such concessions were not given. “There are about 120,000 tax evaders. There are only 4,200 who evade taxes amounting to over Rs. 10 million a year. I don't know if it is the backbone or interest that the Government lacks to collect that revenue. This is what should change.”
State Minister of Finance Ranjith Siyambalapitiya was not available for comment.