President emphasises the need of promptly providing relief to the depositors of ETI

(UTV|COLOMBO) – President Maithripala Sirisena emphasised the need of promptly providing relief to the depositors of the ETI Finance Limited. The President emphasised this when the National Economic Council met at the President’s Office on Tuesday (26).

The special attention of the Economic Council was drawn regarding the selling of the company’s assets and after considering that transaction the recommendations of the Council were presented. In the period of 2015 – 2018, three companies had agreed to buy ETI, two of which are Sri Lankan companies and one is a foreign company. The National Economic Council focused attention on whether there was sufficient transparency during negotiations with the local companies and whether a proper bargaining was done to get a maximum sum to pay the depositors in the transaction. The Council also observed that it is not clear whether all three companies were given the same opportunity for the bidding on the financial company.

At present, a transaction is being carried out to provide relief to the relevant depositors, and during this meeting attention was drawn regarding that transaction. Accordingly, the Central Bank has announced that 20 per cent of the deposits of the ETI has been paid back and another ten per cent will be paid shortly.

Meanwhile, the special attention of the National Economic Council was drawn regarding the micro finance projects. The President pointed out that there is a huge burden on the people in this field and also emphasised the need of a method to register these money-lending institutions.

During this meeting, the progress of the loan scheme that was recently introduced by the Government to provide relief to the affected people has been reviewed and attention was focused on introducing a special programme to further enhance the facilities, the efficiency of the loans and to reduce the interest rate on the loans.

Attention was also focused on setting up an institution for the regulation of Micro Financial Lending Institutions. The President also highlighted the importance of a programme to develop micro financial skills in order to maintain the quality of life for the people without any problem. The National Economic Council has also recommended a suitable mechanism for regulating the process, as there is a tendency of digital lending.

Meanwhile, the physical plan of Sri Lanka, updated by the Ministry of Megapolis and Western Province Development, was presented to the President. This is the first time since year 2007 that the plan has been updated. This plan was based on many aspects of Sri Lanka’s location, water, natural resources, minerals, environmental zones, economic zones, emergencies and natural disasters. It has been pointed out that an economic zone connecting Colombo and Trincomalee between the Western and the Eastern coasts as the main economic development zone is identified. The plan for the development of Sri Lanka was also approved by the National Economic Council.

Ministers Rishad Badurdeen, Patali Champika Ranawaka, Rajitha Senarathne, Arjuna Ranathunga, Daya Gamage, and Secretary General of the National Economic Council Professor Lalith Samarakoon, Secretary of the Finance Ministry Dr. R. H. S. Samarakoon, Central Bank Governor Dr. Indrajith Coomaraswamy and Officials were also presented on this discussion.

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