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Story of selling People's Bank
The ministry of finance emphasis that reports mentioned in newspapers that account-holders would be eligible for share capital; thus the People's Bank is privatised is news that misleads the public and is false as well as malicious. The ministry has stated this by quoting an announcement by minister of finance, Mr. Mr. Mangala Samaraweera.
The press release further states: "Certain political parties and heads of bank trade unions connected to
such parties have quoted them saying that there is a shortage of capital and that the government is making a move to sell shares of People's Bank, it was reported in the media. However, the state has taken no steps to privatize People's Bank. What is at the bottom of of this allegation is the (amendment) draft tabled by finance minister in parliament recently. This draft bill was presented in order to amend the 1961 No. 29 People's Bank Act.
such parties have quoted them saying that there is a shortage of capital and that the government is making a move to sell shares of People's Bank, it was reported in the media. However, the state has taken no steps to privatize People's Bank. What is at the bottom of of this allegation is the (amendment) draft tabled by finance minister in parliament recently. This draft bill was presented in order to amend the 1961 No. 29 People's Bank Act.
What is effected by this amendment is the increase the authorised capital of the bank and of issuing debentures whereby the bank could be strengthened in a financial sense by providing an opportunity for the bank itself to accumulate some funds. After this new Act is approved, People's Bank will be issuing shares to its employees and depositors while shares will not be issued to any outsider.
When presenting the budget in 2019, I made a primary revelation about this. According to that suggestion, the necessity to generate a growing capital market which goes beyond the financial procurement effected by the bank was highlighted by me.
Therefore, malicious announcements released to the media that People's Bank is to be privatised is an attempt of certain politicians and trade unions linked to parties concerned is an act of misleading the public to cover up their bankruptcy. However, as stated in those press releases, it is emphasised that privatization of People's Bank or preparation a plan to that effect is not emphasised.