PB plays new game

Sunday, 16 February 2014 

Payments due to State Banks as loans outstanding by Government Corporations and Statutory Boards are to be settled by the Treasury within the next two weeks, Treasury Secretary Dr. P. B. Jayasundera said. He said a Cabinet Memorandum has been submitted by the Treasury seeking permission to settle outstanding loans plus interest which Government Corporations and Statutory Boards owe to State Banks.

Dr. Jayasundera said the decision was taken with the long term well-being of the country's economy in mind. The Secretary said he was confident that Cabinet approval will be granted soon.

"Due to this action, both state banks, corporations and statutory boards will benefit. The latter will be able to conduct their affairs more vigourously and efficiently sans their debt," he said.

"We are doing it because now the Treasury has the capability do so," he added.

According to Dr. Jayasundera, the Ceylon Electricity Board, Ceylon Petroleum Corporation and many other state institutions are now making good progress while minimising their debt. He said the proposed action will further help boost such progress.

He noted the Ceylon Petroleum Corporation had paid Rs.30 billion which it owed to the People's Bank and the Bank of Ceylon last week and the Treasury intends to pay the outstanding loans of the Paddy Marketing Board, CWE and several other state enterprises.

He said due to these payments the capacity of State Banks will be further enhanced.