CHANDIMAL MENDIS \u2013 Attorney-at-Law with 18 years of experience in the bar.\u00a0\u00a0He assisted the then Finance Minister K N Choksy regarding the Parliamentary Consultative Meetings.<\/li>\n<\/ol>\nEach of them has many years of practice and their credibility can be checked with the Sri Lanka Bar Association. I have selected lawyers who will not compromise their principles and not be got at.\u00a0They also are respected in the community. The Committee has already met and started the investigation process.\u00a0It is a matter of deep regret that they have become the targets of vituperative criticism. That vested interests are at work in this vain exercise to discredit the Government is all too clear.<\/p>\n
An issue has been raised that they are UNP lawyers. Many lawyers started supporting the UNP last year.\u00a0\u00a0One of those who made allegations that these lawyers are UNP is Shiral Lakthilaka. That a person who holds a responsible position has chosen it fit to engage in a campaign of vilification against the Government casts serious doubts over the motives behind their sinister campaign. Not surprisingly, the same Mr. Lakthilaka\u00a0spent time in\u00a0remand\u00a0prison\u00a0not\u00a0so long ago\u00a0for damaging public property worth\u00a0five million rupees.\u00a0\u00a0He was expelled from the UNP.\u00a0A partner\u00a0in this campaign\u00a0is Susil\u00a0Kindelpitiya who was remanded on a complaint by a lady that he brandished a revolver at her.\u00a0She later rescinded that complaint.\u00a0It is such persons whose bona fides are in question who are casting aspersions on the members of the Committee.<\/p>\n
The investigations that are being\u00a0carried out\u00a0are not limited to this issue. It goes\u00a0back to all transactions of public auctions and private placements from 2012 onwards.\u00a0\u00a0This committee has the option to call upon and consult other experts as they see fit. I expect startling revelations to surface because of the unhealthy practices that\u00a0prevailed.<\/p>\n
Since Monday last week, Arjuna Mahendran has been on leave and he informed me that he would\u00a0keep away from work until the investigations are\u00a0completed. He is\u00a0making\u00a0way for a fair and independent inquiry into the matter. This is in stark contrast to the practices adopted by those who held the same position before. If however the Central Bank Governor is required to sign documents, I will consult the Attorney General before deciding on the matter.<\/p>\n
This is the first time in many years that the Government has responded to an allegation, started an inquiry and made a statement in Parliament.\u00a0For almost a decade the allegations of malpractices in financial market has been stalled\u00a0through surreptitious means.\u00a0Instead of being praised for what we did, we are being attacked.<\/p>\n
There are a number of allegations of violations of the Colombo Stock Exchange market rules and Securities and Exchange Commission regulations. The minor ones were compounded. 13 large cases were abandoned purportedly on the lack of evidence. They\u00a0were not investigated or were settled when it should have been\u00a0probed\u00a0further.\u00a0I would like this to be recorded in the Hansard. I have requested the Securities and Exchange Commission to go into these cases.\u00a0\u00a0If necessary, I will bring legislation to permit such inquiry.\u00a0I am also\u00a0seeking for the appointment of a Parliamentary Select Committee to inquire into these transactions.\u00a0Since some of the issues raised are under consideration by the Committee, I prefer to give an answer elaborate after the report is submitted. We plan to table this report in Parliament.<\/p>\n
We have created a free and fair climate for the business community. They are free from fear and intimidation. This applies to the media in this country too. There are no threats, intimidation or trips in white vans. It is high time they turn the searchlight into areas that have remained a virtual \u201cno go zone\u201d in the past. Take for example the banking sector. Take the name of Nimal Perera at Pan Asia or Ranee Jayamaha of Hatton National Bank. Who are they and how did they benefit from certain political personalities of the previous administration? How can Mr. Perera head a Bank given the large number of surveillance referrals made to the Colombo Stock Exchange?<\/p>\n
The National Savings Bank purchased 13 per cent of The Finance Company at fifty rupees per share. That is twenty rupees above market value. The mastermind behind this was Ajith Devasurendera and Dinal Wijemanne. Today, The Finance Company has recorded accumulated net loses of Rs 16 billion.<\/p>\n
Former Chief Justice Shirani Bandaranayake\u2019s private Bank records were forcibly released by the then Management of the National Development Bank (NDB)\u00a0against all norms relating to confidentiality of client data.\u00a0It is for those in the banking industry to turn the searchlight inwards. They are not casinos or gambling dens. There are time tested traditions and conventions. Similarly, in the business sector a closer examination of some of the players becomes inevitable. Take for example Dilith Jayaweera. His roles in the Colombo Land and Development Company and the Reef Comber have to be probed by the authorities. Another such instance is Scott Newman and Kosala Heengama. Similar their role in Environment Resources Investments require very close scrutiny.\u00a0\u2028Take the case of John Keells \u2013 the Government\u2019s decision to cancel the casino licenses has resulted in shareholders dumping their shares.\u00a0\u00a0This is the only way to show their protest against questionable choices by the management.<\/p>\n
Sri Lankan Airlines.\u00a0\u00a0The Cabinet approved by decision\u00a011\/1459\/545\/009 of 4 August 2011 the investment of\u00a0520 Million US Dollars of equity in to Sri Lankan Airlines and Mihin Lanka over a five year period. US Dollars 230 million was required for\u00a0re-fleeting.\u00a0\u00a0The other requirements being\u2028\u2028- Repayment of bank overdrafts\/loans \u2013 US Dollars 52 million\u2028- Repayment of outstanding creditors \u2013 CPC US Dollars 28 million and others US Dollars 15 million\u2028- Funding of working capital (maintain adequate cash reserves) US Dollars 94 million\u2028- Investment in infrastructure\/fixed assets \u2013 US Dollars 81 million (includes investment required in Mattala and Ratmalana airports to provide ground handling services)\u2028Mihin Lanka: – Re-fleeting \u2013 US Dollars 10 million\u2028- Funding of working capital (maintain adequate cash reserves \u2013 US Dollars 5.5 million)\u2028- Repayment of previous outstanding creditors US Dollars 4.5 million\u2028\u2028\u2028The airline has received a total of 375 Million US Dollars.\u00a0\u00a0Out of this, 50 million Dollars was spent for re-fleeting and the balance was utilized to cover the losses.\u00a0As a result, Sri Lankan Airlines does not own a single aircraft. Thus, very clearly, the decision by the Cabinet of Ministers was not followed.\u00a0Nor were\u00a0matters reported back to them.\u00a0These monies were not utilized for the items referred to above.\u00a0\u00a0We do not even own a single\u00a0aircraft.\u00a0\u00a0The airline requires 125 million US Dollars to settle Ceylon Petroleum Corporation dues as well as its loan from the Bank of Ceylon.<\/p>\n
Some Members of Parliament went to the Commission of Bribery and Corruption and handed over their complaint against Arjuna Mahendran.\u00a0\u00a0I would like to ask whether you would like to do the same with Sri Lankan Airlines?<\/p>\n
How much was spent for the country\u2019s development and how much went to fatten the purses of those corrupt is slowly but surely unfolding. Sooner than later, the people of this country will realize how their monies have been squandered. This sorry state of affairs came about against much touted claims of prosperity. The Central Bank had made losses for the past three years though\u00a0self-acclaimed\u00a0financial wizards, through devious campaigns, spoke of growth and gains. Millions of dollars were spent, without express approval by the Cabinet Ministers, on a string of public relations companies in an extravaganza of promoting Sri Lanka. Even chauffeurs of these companies received fat payments. This was whilst the Sri Lanka diplomatic missions were packed with political favorite\u2019s and relatives of former Government leaders. The missions were only promoting those who were serving there. Enormous amounts of money were lost. There were credible allegations that the Central Bank was manipulating, or to say it more clearly, cooking up economic data. That such acts did harm to the country\u2019s economy is one thing. Even worse, they plundered the taxpayer\u2019s money for their own gains.\u00a0I want to assure this house that we will leave no stone unturned in bringing the culprits to book.<\/p>\n
As a result of past misdeeds, the Central Bank has now been forced to embark on the task of re-building their credibility and standing as the country\u2019s most credible financial institution. This is no easy task, since the spin masters have turned the institution into a wasteland. They left behind a legacy of mismanagement and misrule. They have been adopting a system of private placements of bonds. The\u00a0criteria they adopted allowed the Central Bank to cut deals with Primary Dealers. Rebuilding international confidence and credibility has become an uphill task. Who are the people who are responsible for this mess? \u00a0We have may be a half a Trillion to a Trillion Rupees worth of commitments made on highway projects.<\/p>\n
The media says that the Private Sector has lost confidence in the Government.\u00a0\u00a0The people have lost faith in the private sector, so have I.\u00a0It is about time for the Private Sector to decide whether they can work in a modern transparent system or depart.\u00a0I would be calling you up soon.<\/p>\n
The Associate Editor of Daily Mirror called on Arjuna Mahendran to resign.\u00a0\u00a0I have a problem with this.\u00a0\u00a0Long ago, Kesara Abeywardena ran an article asking me to resign as the Leader of the UNP \u2013 I did not take his advice.\u00a0\u00a0Kesara Abeywardena is a friend of Shiral Lakthilaka and he is a lackey of the Rajapaksa regime who is guilty of covering up blatant attacks on media freedom.\u00a0\u00a0That such persons of questionable integrity are preaching morals to us is not only reprehensible but also abhorrent.\u00a0His colleagues are calling on him to \u201cgo in the name of god \u2013 go.\u201d\u00a0\u00a0If he resigns, Arjuna Mahendran may resign.<\/p>\n
Hasn\u2019t the media been irresponsible?\u00a0\u00a0The Sunday Leader owner Asanga Seneviratne runs a business that has made losses from the inception. How is it that he has so much money\u00a0to pour in the business of creating public opinion? From where are the funds? These are all\u00a0those\u00a0who benefited from the Rajapaksa\u2019s. I am sure members of this house are aware that one electronic media outlet has made me a target. Hardly a day passes without a campaign of misinformation and character assassination. All because I am not prepared to dance to the tune of the owner and meet all his demands. I must confess that I am emboldened by what they are doing. It has given me courage and strengthens my resolve to\u00a0expose their sinister motives. There is also an ugly side to it. Innocent people are being misled but such numbers are dwindling. Their performance have ruined their credibility and lost them the trust of the public.<\/p>\n
One reason\u00a0for this\u00a0is that Indian Companies are looking at Palk Strait and exploring for natural gas.\u00a0\u00a0There is a company with strong links to the media that was trying to partner with one of these Indian Oil exploration companies.\u00a0\u00a0However the only credible partner for the Indians in Sri Lanka is the Ceylon Petroleum Corporation. I will not allow collaboration with any other Sri Lankan Company.<\/p>\n
I am determined to clean up the Private Sector, the banks and the Stock Exchange.\u00a0\u00a0This is the age of the people \u2013\u201cMahajanaya<\/em>.\u201d\u00a0\u00a0I will listen to the \u201cmahajanathawa<\/em>\u201d not to the \u201cMaharajahs.<\/em>\u201d\u00a0\u00a0Anyone who has watched Citizen Kane will see how press baron William Randolph Hearst suffered as a result of his self-delusion.\u00a0\u00a0If you haven\u2019t watched this, I recommend you do.<\/p>\nI also want to state that there is an imperative need in Sri Lanka for an Independent Broadcasting Authority. This is like the one existent in the United Kingdom to ensure ethical and fair conduct. Some institutions at present have become tools in the hands of their owners who have to protect not only their business empires but also more importantly their secrets and sinister ambitions.<\/p>\n
It is only after we assumed office that the Central Bank adopted a more prudent system of calling for competitive bids. As a result the Government is able to raise funds at the most competitive rates. This would ensure that the government is able to raise money at the most competitive rates. The way the bond markets behave and how the secondary market works can be complicated and not many would understand the complex nature of transactions.<\/p>\n
But we can compare the latest 30-year bond issued under this government and the ones that were issued under the previous one. The 30-year bond of June\u00a02014 was issued at an average interest rate of 11.75 percent. The latest bond was sold at 11.73, slightly lower than the rate paid last year. This means we were able to raise just over 10 billion rupees at a rate cheaper than what the previous government paid. Furthermore, there are several previous instances of the Central Bank accepting much higher volumes of bids than what were advertised. On 14 February 2014, Rs 1 billion worth of treasury Bills were offered and over Rs 11 billion were eventually sold. On 14 November of the same year Rs 2 billion were offered and over Rs 13.5 billion were sold. What our government and the Central Bank have done is to raise money for the Government at the best possible rate through a competitive bidding process instead of using private placements. The House would agree that it is not a healthy practice to allow private placements when we could get better terms by opening up to a competitive environment. By resorting to a traditional transparent auction of government bonds, the Central Bank has already made significant progress in raising funds for the Government. Just last week a record Rs 100 billion was raised in 4 auctions to repay Rs 79 billion of bonds coming due this week and to keep funding government projects. \u2028\u2028The most important aspect of the entire issue is the transparent manner in which we responded to the criticism directed at us from various quarters. We never stifled any voice of criticism. The media, the civil society, political parties were given total freedom to voice their opinion on the bond issue. There were no white-vans at the doorsteps of those who criticized the government on this matter. Secret units did not tap their telephones. No one received threatening phone calls after voicing their opinion on the bond issue at public\u00a0forums – like they did in the past, under the watch of the Rajapaksa regime. The People, the legislature, the civil society and the media were either hoodwinked or intimated when it came to problems involving public money. That is the main difference of the present government. It acts in a responsible manner and is accountable to the public as well as to the Parliament. When I raised a question about the Colombo Port City issue in Parliament, the previous government said “documents” of the deal should be brought to Parliament in Lorries. That was the manner in which they responded to allegations\u00a0leveled\u00a0by the opposition.\u00a0\u2028\u2028Two Director Generals of the Securities and Exchanges Commission were forced to resign when they tried to investigate allegations of corruption. Journalists were not even allowed to write about the circumstances under which the Director Generals of the SEC had to leave their positions. We have acted in a totally different manner, demonstrating that we are a government that is accountable to Parliament.<\/p>\n
People wanted an end to that dark decade and we have shown the \u201cchange” we have brought about over the past two months. What we have at the moment is not a “bond issue”, but an issue of certain elements who have been rejected by the people. Earlier, they attempted to defeat President Maithripala Sirisena at the presidential election, and now they and their sycophants are attempting to sling mud at us for their petty political gains. They are, I must say, trying to take undue advantage from the democratic platforms that we have created under the new government which came to power after January 08 elections.<\/p>\n
\u0d91\u0daf\u0dcf\u00a0\u0da2\u0db1\u0dcf\u0db0\u0dd2\u0db4\u0dad\u0dd2\u00a0\u0db8\u0ddb\u0dad\u0dca\u200d\u0dbb\u0dd2\u0db4\u0dcf\u0dbd\u00a0\u0dc3\u0dd2\u0dbb\u0dd2\u0dc3\u0dda\u0db1\u00a0\u0db8\u0dd0\u0dad\u0dd2\u0dad\u0dd4\u0db8\u0dcf\u00a0\u0db4\u0dd0\u0dbb\u0daf\u0dd4\u0dab\u0dcf\u00a0\u0db1\u0db8\u0dca\u00a0\u0d85\u0da9\u0dd2\u0dc4\u0dba\u0d9a\u0dca\u0db4\u0ddc\u0dc5\u0ddc\u0dc0\u00a0\u0dba\u0da7\u0da7\u00a0\u0dba\u0dc0\u0db1\u0dca\u0db1\u00a0\u0db6\u0dbd\u0dcf\u00a0\u0dc3\u0dd2\u0da7\u0dd2\u00a0\u0d85\u0dba\u00a0\u0d85\u0daf\u00a0\u0dba\u0dc4\u0db4\u0dcf\u0dbd\u0db1\u0dba\u00a0\u0d9c\u0dd0\u0db1\u00a0\u0d85\u0db4\u0da7\u0d8b\u0d9c\u0db1\u0dca\u0dc0\u0db1\u0dca\u0db1\u0d91\u0db1\u0dc0\u0dcf.<\/p>\n
\u0dc3\u0daf\u0dcf\u0da0\u0dcf\u0dbb\u0dba\u00a0\u0d9c\u0dd0\u0db1\u00a0\u0db4\u0dcf\u0da9\u0db8\u0dca\u00a0\u0d9a\u0dd2\u0dba\u0dbd\u00a0\u0daf\u0dd9\u0db1\u0dca\u0db1\u00a0\u0d91\u0db1\u0dc0\u0dcf.<\/p>\n
\u0d85\u0db4\u0dd2\u00a0\u0d92\u00a0\u0d85\u0dba\u0d9c\u0dda\u0d85\u0dbb\u0db8\u0dd4\u0dab\u0dd4\u00a0\u0d9c\u0dd0\u0db1\u0dc4\u0ddc\u0db3\u0da7\u00a0\u0daf\u0db1\u0dca\u0db1\u0dc0\u0dcf.\u00a0\u0d94\u0dc0\u0dd4\u0db1\u0dca\u00a0\u0db8\u0dda\u00a0\u0db8\u0da9\u00a0\u0d9c\u0dc4\u0db1\u0dca\u0db1\u0dda\u00a0\u0db4\u0dbb\u0dcf\u0da2\u0dba\u0dda\u00a0\u0dc0\u0dd2\u0dba\u0dbb\u0dd4\u0dc0\u00a0\u0db1\u0dd2\u0dc3\u0dba\u0dd2.<\/p>\n
\u0d94\u0dc0\u0dd4\u0db1\u0dca\u00a0\u0db4\u0dca\u200d\u0dbb\u0dc1\u0dca\u0db1\u0d9c\u0dd0\u0db1\u00a0\u0d9a\u0dca\u200d\u0dbb\u0dd2\u0dba\u0dcf\u00a0\u0d9a\u0dbb\u0db4\u0dd4\u00a0\u0d85\u0db1\u0dca\u0daf\u0db8\u0da7\u00a0\u0dc0\u0da9\u0dcf\u00a0\u0dc3\u0dc4\u0db8\u0dd4\u0dbd\u0dd2\u0db1\u0dca\u0db8\u00a0\u0dc0\u0dd9\u0db1\u0dc3\u0dca\u00a0\u0d85\u0db1\u0dca\u0daf\u0db8\u0da7\u00a0\u0d85\u0db4\u0dd2\u0db4\u0dca\u200d\u0dbb\u0dc1\u0dca\u0db1\u00a0\u0d9c\u0dd0\u0db1\u0d9a\u0dca\u200d\u0dbb\u0dd2\u0dba\u0dcf\u00a0\u0d9a\u0ddc\u0da7\u00a0\u0dad\u0dd2\u0db6\u0dd9\u0db1\u00a0\u0db6\u0dc0\u00a0\u0d85\u0db4\u0dd2\u00a0\u0db4\u0dd0\u0dc4\u0dd0\u0daf\u0dd2\u0dbd\u0dd2\u0dc0\u00a0\u0d94\u0db4\u0dca\u0db4\u0dd4\u00a0\u0d9a\u0ddc\u0da7\u0dad\u0dd2\u0db6\u0dd9\u0db1\u0dc0\u0dcf.<\/p>\n
\u0dad\u0dd0\u0db1\u0dca\u00a0\u0dad\u0dd0\u0db1\u0dca\u0dc0\u0dbd\u0dc4\u0dd0\u0d82\u0d9c\u0dd3\u00a0\u0db8\u0da9\u00a0\u0d9c\u0dc4\u0db1\u0dca\u0db1\u0dda\u00a0\u0db1\u0dd0\u0dad\u0dd2\u0dc0\u00a0\u0db8\u0dc4\u00a0\u0db8\u0dd0\u0dad\u0dd2\u0dc0\u0dbb\u0dab\u0dba\u0d9a\u0da7\u0db4\u0dd0\u0db8\u0dd2\u0dab\u00a0\u0d85\u0db4\u00a0\u0dc3\u0db8\u0d9c\u00a0\u0db8\u0dd4\u0dc4\u0dd4\u0dab\u0da7\u0db8\u0dd4\u0dc4\u0dd4\u0dab\u00a0\u0dc3\u0da7\u0db1\u0d9a\u0da7\u00a0\u0d91\u0db1\u00a0\u0dbd\u0dd9\u0dc3\u00a0\u0db8\u0db8\u00a0\u0d94\u0dc0\u0dd4\u0db1\u0dca\u0da7\u00a0\u0d85\u0db7\u0dd2\u0dba\u0ddd\u0d9c\u0d9a\u0dbb\u0db1\u0dc0\u0dcf.<\/p>\n
This government has nothing to hide as we have always been guided by the principles of good-governance, which was at the core of our election manifesto. I must also reiterate that the government’s efforts cannot be hampered by malicious and vituperative propaganda campaigns.<\/p>\n
I must tell this House that there is something happening in Sri Lanka at the grassroots level. Change is happening. Instead of poverty, corruption and injustice people see hope of prosperity, good governance and justice. For, a decade they have faced the darkest of demons and impossible odds and as one people they have spoken in January for a better way. I now speak in this House on their behalf.<\/p>\n
They stand with us now for good governance. They stand for Justice and Fairness and they stand for Prosperity and Jobs. They stand with us for Freedom.<\/p>\n
They believe in this journey that we have started together. And we will not let them down. We will finish this job.<\/p>\n
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