State banks to be privatized?

Colombo (News 1st): Journalists today questioned Minister of Finance Mangala Samaraweera on rumours regarding state banks being privatized. Responding to this the Minister noted that this rumour is fake and nothing but a lie. He added that he released a statement in this regard yesterday and noted that he is unsure whether their friends from the JVP are falling for the lies of MP Wimal Weerawansa. He stressed that they have no plans to privatize Peoples Bank or Bank of Ceylon. During a media briefing today JVP MP Bimal Ratnayake noted that the People's Bank is a 100% state-owned enterprise and has made profits of Rs. 17 billion last year. He added that the Treasury takes all of these profits, depriving the bank of further development. However, they now claim that there are no funds to develop the bank and that the bank is facing capital inadequacy. He went onto note that the government is, therefore, attempting to amend the banking act that allows the sale of 10% of the bank's shares to external parties. However, they are trying to fool the people by saying that 10% of shares will be given to depositors and employees of the bank. MP Ratnayake noted that only those who were not born in Sri Lanka will not have a bank account at Peoples Bank, therefore, essentially what they are trying to do is privatize this entity. UPFA MP Vijitha Verugoda addressing the same matter noted that the employees and members of trade unions of state banks are worried as they have no confidence in the minister of finance. He noted that it was clearly stated through the budget proposals that there will be a share issue. He said Mangala Samaraweera issuing a release says that the state banks will not be privatized, however, he adds that debentures will be issued. He noted that if these debentures translate into shares, once these shares are sold it will definitely be privatized. The MP noted that this is what the government is trying to do. MP Nimal Lanza commenting on the same matter said he believes that after all of this the UNP will obtain the least number of votes in the party's history and will lose.