PARLIAMENT

For development of nation:

'Pradeshiya Sanwardana Bank has provided loans'

by Sandasen MARASINGHE and Irangika RANGE

Speaker Chamal Rajapaksa presided when Parliament met at 1 pm yesterday. After presentation of papers and oral questions, the House took up the debate on the second reading of the Pradeshiya Sanwardana Bank (Amendment) Bill and the Regulations under the Import and Export (Control) Act and the order under the Sri Lanka Telecommunications Act.

International Monetary Cooperation Senior Minister Sarath Amunugama

When we consider the Pradeshiya Sanwardana Bank (Amendment) Bill, the Government has introduced a very small amendment. The change being the Pradeshiya Sanwardana Bank could establish its Head Office at any place in the country.

During the crises situation faced by banks, it has been decided that the reserves in banks should be increased.

The Pradeshiya Sanwardana Bank has granted loans at a rate of 31 percent for agriculture, 2 percent for fisheries, 10 percent for other industries, 2 percent for animal husbandry and 10 percent for housing etc., for the development of the nation. We have to focus our attention on rural loans.

We have also to provide land and money to the people in rural areas.

That is what the people in rural areas need. Accordingly, these banks should be brought to rural areas and provide them with loans. The public should be allowed to earn and invest and they should also pay back the tax to the government.

We have developed our agriculture sector and there is still room for further development.

We have to pay attention to the development of our industries. The rate of development is difficult to increase and that is the reason that we have to provide a comfortable background for rural people to earn. With this objective in mind, the government is attempting to develop these types of banks.

Deputy Chairman of Committees, Chandrakumar Murugesu takes the Chair.

Ravi Karunanayake (UNP): There is no doubt we should develop a national economy, but the method is the issue.

The government has stated that the UNP was businessmen friendly. But although the government stated that tax will be reduced, it is again increasing. The government says the loans should be granted at an interest rate of 8 or 9 percent. But what is the bank that will grant loans at such an interest rate?

Telecommunication Minister Ranjith Siyambalapitiya: By order of the Sri Lanka Telecommunications Act, a new tax system has not been imposed. This only a suggestion that was made in the budget proposals.

This tax was imposed instead of two taxes, as the government expects an excess revenue of Rs 1 billion.

Today our computer literacy is up by 35 percent, but which rate had been only 4 percent in year 2004. Our target was to increase it to 75 percent by year 2016.

Sri Lanka was ranked 86 out of 115 countries, according to the NIT index in 2005. But our country has managed to reached the 66th place out of 138 countries, according to the same index.

Dayasiri Jayasekara (UNP): This government has no proper management over financial matters. The government presents Acts from time to time, contradictory to each other.

The government said that it would make a situation comfortable for the poor people. But it has increased taxes on vehicles bought by poor people.

Now the stock market is falling apart day by day. The government has to find solutions for these issues.

Deputy Health Minister Lalith Dissanayake: The Pradeshiya Sanwardana Bank was established in 2010, bringing 6 Pradeshiya Banks together. These provincial banks provide facilities and services to rural folk.

So this bank which caterers to rural folk, should be located in rural areas and not at the 12th floor of the Access Tower.

Accordingly, this bank should be located somewhere else which would save Rs 25 million of rental charges. This type of change is timely and proper.

Sunil Hadunnetti (DNA): The Government has submitted a supplementary estimate seeking Parliamentary approval for the allocation of Rs.252 million to purchase vehicles for the Presidential Secretariat, while the people are living in great difficulties.

The prices of milk powder have been increased. The price of a loaf of bread too was increased. We must take these issues up in Parliament, the most prestigious place responsible to the people.

Commerce and Industry Minister Rishad Bathiudeen: At this crucial time of economic development in Sri Lanka, our Government will continue to take every progressive measure to facilitate investment, manufacture and exports. Despite efforts of the global recession, Sri Lanka has shown a great resilience by continuing to enhance the value of its exports.

According to latest statistics, Sri Lanka's export earnings have shown the highest ever annual value of US$ 8.3 billion in 2010 (up 17.3%), while the export earnings in December 2010 alone, recorded the highest ever monthly value of US$ 968 million.

S. Shridharan (TNA): Unemployment problems in the North and East should be addressed.

The government should take measures to confirm the jobs of 58 workers who have temporarily served in the Bank of Ceylon.

Vasudeva Nanayakkara (UPFA): We are trying to increase the cess levy which is only charged from the cost.

Companies earn large profits by way of various charges from customers. We will only increase the cess levy on companies which earn huge profits. The cess levy will be applied to the Telecommunication industry. Our charges from telecommunication companies are very less compared to other countries in the world. It is reported that mobile connections have increased to 26.9 million in 2009, compared to 17 million in 2008.

It is obvious that the telecom sector companies revenue have increased. That is why we have decided to charge a certain amount of cess from the companies. This will not have a bad impact on the customers. The government's policy is increasing direct taxes, while reducing indirect taxes. This will pave the way to reduce the burdens of the people.

Eran Wickramaratne (UNP): If the banking sector happens to collapse, it will badly affect the entire economy.

The main intention should be to protect the depositors. Depositors are the backbone of the Bank. New investments for the banking sector should be increased.

We know that the capital requirements of banks have been gradually decreasing in the recent past. Therefore, it is necessary to inject large amounts of capital to banks by the end of this year. Otherwise, banks will not be able to invest nationally and internationally.

UPFA MP, A.H.M.Azwar takes the Chair

W.G.Padmasiri (UPFA): The Pradeshiya Sanwardana Banks have played a vital role in rural areas. These banks have benefited vastly by uplifting the living standards of small and medium scale entrepreneurs by granting them loans for various fields.

Therefore the Pradeshiya Sanwardana Banking system should be strengthened to provide a better service specially to the people in rural areas.

R. Yogarajan (UNP): The Pradeshiya Sanwardana Banks were established to cater to the needs of people within their respective regions.

These banks were introduced targeting regional development, but now the Government is trying to centralize this banking system.

So we are unable to expect a better service by centralizing the banking system.

Social Services Minister Felix Perera: Almost all were running their businesses with the support of the banks. We import milk powder and oil from Singapore where they don't have even a single cow, nor an oil well. The reason behind this was that Singapore was an economic hub. President Mahinda Rajapaksa too wants to make our country an economic hub.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair.

J R P Sooriyapperuma (UPFA): Today, the Opposition Leader played the role of Princess Maname by making his speech in connection with the Advisory Committee Report of the UN Secretary General.

The Opposition Leader very craftily handed over the sword to Ban-ki Moon and the sheath to the government.

Today, the world's strongest economy was China not America.

The European countries have oil only for 10 years or 12 years. But most of Middle East countries have their oil reserves for more than 90 years, so countries not having oil reserves attempt to wage war against countries that have oil reserves.

The Bill, regulations and order were passed without amendments.

Parliament adjourned until 1 pm today.