State Bank on verge of default; Harsha tells Parliament

COLOMBO (News 1st); Samagi Jana Balavegaya Parliamentarian Dr. Harsha De Silva has revealed that a State Bank in Sri Lanka is on the verge of default.

"I am informed that a State Bank defaulted this morning," the MP told Parliament on Thursday (24), urging the house to look into the matter.

"Three months ago I warned, that they are involved in the Buy-Sell-Swap scheme. There was a rule that the dollar could NOT be sold above Rs. 200/-," said the MP adding as a result banks had to purchase dollars on a negative premium.

The MP said that State Banks had purchased dollars for Rs. 200/- promising to sell them back in three months for a mere Rs. 185/-, adding that the move to purchase on a negative premium would result in the collapse of the entire banking system.

"If what is happening is true, it is the beginning of a disaster," warned the MP, adding it is the people's money that is placed in a crisis situation.