Govt rebuts Oppn criticisms
The government yesterday condemned the Opposition’s attempts to
target specific economic personalities to create chaos in state
institutions and destroy the trust certain key institutions, such as the
Central Bank of Sri Lanka, have in the eyes of the people.
Certain JVP MPs have taken a major effort to destablise economic
nerve centres by creating unrest within the working population over EPF
and NSB issues. They are orchestrating concerted attacks on the EPF and
NSB to achieve their petty goals, a statement issued by Government
Information Department Director General Prof Ariyaratne Athugala said.
The statement: “There has been a recent systematic effort to
destabilise the country’s financial system by a few MPs of the UNP and
JVP.
“Towards this end, they have been consistently attacking the Central
Bank, the EPF and the NSB. They have also attempted to destabilise the
stock market as well precipitate a run on deposits of finance companies
by repeatedly stating that the fifth largest finance company in the
country,
The Finance Company Limited (TFC) is unstable and bankrupt. TFC has
more than Rs 20 billion in deposits and it is clear that these
Opposition MPs are clearly attempting to destabilise this organisation.
“A very clear statement was made by Senior Minister Dr Sarath
Amunugama about two weeks ago in Parliament, stating that there is no
risk in TFC and the financial system, but it would be useful if similar
statements are made once again, both in Parliament and outside, since
the Opposition cry is made louder and louder, in order to gain some
traction towards this dastardly outcome.
“TFC is one of the several restructured companies which belonged to
the Ceylinco Group and it is today on the path of profitability, after a
difficult journey in the aftermath of the Kotalawela saga. This
financial institution was carefully nurtured back to financial health,
with the appointment of a Managing Agent, the reconstitution of the
Board, and the recapitalisation of the capital of the company.
“TFC has also retained several top level consultants to advice them
on re-positioning the company and it is likely that over time, it would
be one of the stronger finance companies in the financial landscape. At
the time of restructuring, new shares of the company were issued in a
public share issue at Rs 40 per share, and subsequently share trades
event took place at Rs 48 per share. Therefore, it is clear that the
current reduction of the share price of TFC is not a reflection of a
weakness in the company, but due to the present trend that the share
market in Sri Lanka as well as share markets all over the world, have
been subjected to.
“Reference may also be made to the recent share issue of the new
software giant, Facebook in the USA, where, very recently, shares were
issued at US$ 38 per share which rose to US $ 42 per share, but has not
reduced to US $ 28 per share! Here again, such reduction is not a
reflection of any problem with the company, but rather due to the
general worldwide trends that are taking place due to the global
turmoil.
“There have also been many attempts to discredit and damage the
credibility of the EPF on the grounds that some of its investments have
lost value in the stock market.
It may be useful to mention that the EFP is a long term fund which
aims for long term returns. Mention may be made that it is not a short
term ‘hedge fund’ or an investor who is functioning on a ‘margin
account’.
That is precisely the reason why, even when the market was on an
upward trend, and the EPF had amassed unrealised gains of over Rs 19
billion in its portfolio, the EPF was not inclined to realise such
investments and make a profit.
“In fact, the EPF did not do so, because it was convinced that it
could make even better returns for its members over the longer time
horizon.
At the same time, it may be stated that all investments made by the
EPF are based on careful analysis carried out by qualified and
technically competent persons with experience, who are guided by a high
powered investment committee.
Further, the decisions of the investment committee are finally
approved by the Monetary Board.
“The current government has been in the forefront of protecting the
entire financial system, and this fact is clearly borne out by recent
efforts where Sri Lanka’s financial system has remained robust and safe
even in the face of intense global instability.
It is in order to disturb this situation and create chaos that
Opposition MPs seem to be pouncing on various perceived setbacks and
attempting to make capital out of such situations.
Further, this attempt to destabilise the economy of the nation seems
to be similar to their previous efforts to stop the humanitarian
operation during the period 2008-2009.
It may therefore be necessary to expose this current blatant and
anti-national effort to destabilise the economy, and ensure that the
people of this country are apprised of the hidden and ulterior motive
behind these attacks, by these economic hit-men.
“Key international organisations such as the IMF, World Bank and ADB
have categorically stated that management of Sri Lankan economy is on
course towards stability and growth, and these statements have been
reconfirmed by all rating agencies Standard and Poors, Fitch and Moodys.
Therefore, even though the world is in serious turmoil and is
undergoing serious complications, the Sri Lankan economy has been stated
as being in reasonably good shape.
Therefore, it is getting quite clear that the Opposition is now
getting desperate because they may have been hoping Sri Lanka’s economy
too, would have faltered in the face of the global situation.
Since that does not seem to be happening, they are now also resorting
to the despicable efforts to target specific economic personalities,
including the Governor of the Central Bank, in order to create chaos in
state institutions, and to destroy the trust that certain key
institutions such as the Central Bank have in the eyes of the people.
“Since of late, certain MPs of the JVP have so undertaken a major
effort to create unrest within the working population, by orchestrating
concerted attacks on the EPF and the NSB.
While the above mentioned points are valid in a responsible to their
charges, it may also be mentioned that the JVP would be a least
qualified political party which can speak about any losses to the state
or the people.
It was only just over 20 years ago that the JVP burnt thousands of
buses, trains, motor vehicles, agricultural centres, Post Offices,
community centres, private houses, government offices, transformers,
agricultural implements etc, and caused enormous losses to the
government and the people.
“They also caused a massive economic loss by closing factories, banks
etc, and stopping economic activity while killing thousands of political
and business leaders, village leaders, and many other innocent persons
who were, in their language branded as ‘traitors’. The loss that they
caused has now been assessed and has now been estimated at around Rs 60
million.
If therefore, the JVP is serious about making good their policy about
minimising waste and corruption in the country, they must immediately
take steps to pay back the sum estimated as the loss caused by them, to
the government and country, and seek the pardon of the people for the
damage and the destruction that they caused to this country.” |