Chairman of state banking giant People’s Bank, Mr. W. Karunajeewa recently said that People’s Bank was prepared to offer the best concessions and the highest level of support for the stability and welfare of the co-operative sector, following the 2008 budget proposals presented by President Mahinda Rajapaksa.

Mr. W. Karunajeewa went on to say that People’s Bank had its roots firmly planted in the co-operative movement, and that the Bank would always take the necessary steps to ensure its interests.

He stated this at a meeting held recently at the Staff Training College of People’s Bank under the theme of ‘2008 Budget – the Responsibilities of the Co-operative Movement and the Contribution of People’s Bank.’ Mr. W. Karunajeewa added that “The budget proposals presented by the President have given numerous rate concessions and financial facilities to the co-operative movement that would undoubtedly strengthen it to compete with the private sector. Many a previous budget had restricted this sense of competition within the co-operative sector, and had not allocated it this many concessions.”

The relationship between the co-operative movement and People’s Bank is a long-standing one, with People’s Bank being its only banker. The present system of rural banking sector, which is a profitable entity of the multi-purpose co-operative societies, was established with the leadership and initiative of People’s Bank. These multi-purpose co-operative societies have accumulated deposits of nearly Rs.30bn through 1,650 rural banks.

The Chairman added that the Bank had extended various loans, overdrafts and other financial facilities at low interest rates.

“The government provides concessions on essential consumer goods amidst great economic pressures. Yet profit-oriented businessmen have not taken steps to ensure that these concessions are transferred on to the people. It is with a clear understanding of this situation that the government stepped into remedy the situation through the co-operative sector. The government’s main aim is to utilize the co-operative sector to ease the economic hardships of the people,” said Mr. W.

Karunajeewa. He added that it was his sincere hope that co-operative societies would face market competition with a positive attitude, while working to meet the President’s objectives of economic development.
People’s Bank CEO and General Manager Asoka de Silva said that the co-operative movement was a prominent stakeholder of People’s Bank.

Through the suggestions made in the 2008 budget to strengthen the co-operative movement, the government expected to increase the efficiency of the co-operative movement and to reduce the prices of essential consumer items, in order to find solutions to the economic hardships of the people.

Mr. Asoka de Silva added, “There needs to be a collective attitudinal change in all workers of the co-operative sector in order to achieve the vision and objectives of the 2008 budget proposals. All of you must aim to minimize waste, wipe out corruption and generate profit through fair means. People’s Bank will extend it wholehearted support to ensure the success of the co-operative movement. I hope that the co-operative movement will have the strength to utilize the concessions given to it by the 2008 budget proposals to make its fullest contribution on a national level to ease the economic hardships of the people.”

Speaking at the occasion, Deputy General Manager (Development Banking) P. V. Pathirana, said: “The co-operative movement has an enormous responsibility to ensure that it utilizes the concessions granted to it by the 2008 budget proposals towards helping the people. It is encouraging to note that the budget proposes a plan to get the co-operative sector involved in reducing the prices of essential consumer items.”

Cooperatives Development Assistant Commissioner E. A. Jayatunga said: “We are extremely satisfied at the concessions offered to the co-operative sector with the aim of strengthening it. Each co-operative society must form a new business plan, which will make it easier for it to succeed in the market. People’s Bank and the co-operative sector have a long way to go. This is the last opportunity to save the co-operative movement altogether.”

National Co-operative Association Vice President B. M. Chandrasena said that the concessions offered to the co-operative sector in the 2008 budget proposals had not been given to any other sector. He added that it was possible to create a successful co-operative movement by utilizing these concessions.

This meeting was attended by the corporate management of People’s Bank, and the Chairmen and General Managers of co-operative societies representing all districts in the island. The management of People’s Bank paid special attention to the problems presented by the officers of co-operative societies and promised to offer speedy solutions.