February 09, Colombo (LNW): In a parliamentary session held on February 8, Justice Minister Dr. Wijeyadasa Rajapakshe disclosed that a staggering Rs.1,300 million, obtained as loans from State Banks by university academics pursuing higher education abroad, remains unpaid. The Minister highlighted that these lecturers, who migrated for advanced studies, have neglected to return to their respective universities. Surprisingly, both the university and banking systems have failed to take any measures to recover this substantial amount.
Responding to a query from Opposition Leader Sajith Premadasa, Minister Rajapakshe acknowledged the ripple effects of this situation, noting that the non-repayment of interest-free loans from state banks is hindering the education of students enrolled in Horizon campus.
Furthermore, Minister Rajapakshe drew attention to the alarming financial situation of two key State banks, namely the Bank of Ceylon and the People’s Bank. These institutions, originally established to bolster the domestic economy, have witnessed a concerning trend of Rs.602 billion in inactive loans, particularly related to the third phase loans. The Minister emphasized that this substantial loss to the country reflects a flawed policy, despite the banks’ efforts to provide fair-interest loans to small and medium-sized industrialists.
