Nov 23, 2018

Debt recovery cabinet paper, a Rajapaksa political move

A cabinet paper submitted by Mahinda Rajapaksa as the finance minister on November 29 will place many who have obtained bank loans in trouble, ‘Lanka’ reports.

The Government Information Department announces it as the “Amendment to the Debt Recovery (Special Provisions) Act No.2 of 1990 (Document No 08)”

It says,

“Debt Recovery (Special Provisions) Act has been introduced with the intention of initiating a method to accelerate loan recovery procedure. The Act covers only the lending institutions existed then, and hence the Cabinet of Ministers approved the proposal presented by Hon. Mahinda Rakapaksah, in his capacity as the Minister of Finance and Economic Affairs to amend section 30 of the said act in order to provide legal provisions to add licensed special banks established afterward.”

The newspaper says the intention of the politically-motivated cabinet paper is to recover loans obtained by the general public in an attempt to prevent the destabilization of the economy as a result of political conspiracies.