Batticaloa District MP Shanakiyan Rasamanickam has questioned Parliament about disparities in how state-owned banks pursue debt recovery, alleging that ordinary citizens face strict enforcement while politically connected defaulters owing billions escape consequences.
Batticaloa District MP Shanakiyan Rasamanickam raised concerns in Parliament regarding what he characterized as inconsistent application of debt recovery measures by state-owned financial institutions. Speaking through a Standing Order 27(2) Question directed at the Minister of Finance, the MP highlighted that ordinary citizens defaulting on loans face swift legal action resulting in asset seizure, while he claimed large borrowers with political connections remain largely unaccountable.
Shanakiyan emphasized that state banks lend public deposits rather than government funds, making rigorous recovery efforts a public accountability matter. He drew attention to a recent court case involving a politician who obtained substantial loans from a state bank, allegedly redirected the funds to private lending activities, and failed to repay. The MP also suggested potential impropriety by bank officials in facilitating such transactions.
The MP formally requested the Finance Minister provide comprehensive details on the 20 largest nonperforming loans and 20 largest written-off accounts across five state banks: Bank of Ceylon, People's Bank, National Savings Bank, Regional Development Bank, and State Mortgage & Investment Bank. His request included specific information on borrower identities, outstanding amounts, issuance dates, collateral details, restructuring status, and whether any legal or disciplinary action was taken against involved officials.
Shanakiyan called for consolidated recovery reports, requesting at least preliminary findings within three months if complete details were unavailable immediately. He concluded by stressing that accountability standards must apply uniformly across all borrowers, stating that public funds belong to citizens and deserve equal protection regardless of the borrower's financial status or influence. The Finance Minister requested additional time to compile the requested information.
