The fact that EAP businesses are being sold to a Malaysian company goes on to prove that the country is in a financial crisis says Parliamentarian Bandula Gunawardena.
“A newspaper has reported that EAP group of companies is now set to be sold to a Malaysian Company which proves my claim that the country is in a financial crisis” the MP said adding that the statements made by the UNP after the budget has caused these issues. The parliamentarian made these comments at a press briefing held in Punchi Borella by the Joint opposition Economic research unit yesterday (26).
Financial Market Crippled
The MP also claimed that due to the statement made by the Central Bank’s financial committee on December 5, investors of the financial markets have been scared off.
He said the announcement of abolition three licensed Sri Lankan financial institutions could even result in the collapse of the stock market.
“The Central Bank has announced that the licence of Central Finance and Investment will be cancelled while Standard Credit Ltd, and CIty Finance Corporation are on shaky ground” the MP said adding that around 12,000 depositors are now trying to take their money back thereby causing a crisis.
Depositors in trouble
“Seniors, Pensioners and normal depositors have put in their money to these institutions” he said pointing out that there is no system to help out the public when a private firm collapses.
According to the MP IMF criticized the move to use public tax money to bail of Golden Key depositors when the company collapsed so following the new methods to follow with regards to such companies introduced in 2011 therefore making the Central Bank responsible to ensure the depositors protection.
“No one wants to invest in the country now” the MP maintained adding that if depositors attempt to withdraw large amounts it will cause further issues.
Request from the President
He also mentioned that through spreading reports of financial misconducted of the former government the whole financial system has collapsed. He requested the President to look in to these allegations to ascertain their truth. “We request he look in to the troubles of the people without only focusing on the election” Gunawardena said.
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