Batticaloa MP Shanakiyan Calls Out Banks' Double Standards in Debt Recovery Practices
Batticaloa District Member of Parliament Shanakiyan Rasamanickam has raised serious concerns about what he describes as a stark double standard in how state-owned banks in Sri Lanka pursue loan recoveries, questioning why ordinary small borrowers face the full force of the law while politically connected defaulters appear to escape accountability.
Small Borrowers Bear the Brunt
Speaking out on the issue, MP Shanakiyan highlighted the troubling disparity between how state banks treat everyday citizens who fall behind on modest loans versus how they handle large-scale defaulters with political ties. He argued that low-income borrowers — many of whom have taken small loans to sustain livelihoods and family needs — are subjected to aggressive recovery measures, including legal action and asset seizures, while those with influence and connections appear to face little to no consequence for far larger outstanding debts.
A Question of Fairness and Accountability
The Batticaloa District lawmaker's remarks draw attention to a long-standing grievance among ordinary Sri Lankans who feel the financial system operates on unequal terms. Shanakiyan questioned why institutions that are publicly owned and funded by taxpayers would selectively enforce recovery laws in a manner that disproportionately burdens vulnerable communities.
The MP called on authorities to ensure that state banks apply the same legal standards uniformly, regardless of a borrower's political affiliations or social standing.
Broader Implications for Public Trust
The issue raises wider questions about governance and transparency within Sri Lanka's state banking sector. Critics have long argued that political interference in public financial institutions has allowed certain well-connected individuals and businesses to accumulate significant unpaid debts without facing the same consequences that ordinary citizens would.
Shanakiyan's intervention adds a fresh parliamentary voice to calls for reform, urging that the rule of law be applied consistently across all segments of society when it comes to financial obligations owed to state institutions.
The MP's remarks are expected to draw further debate within Parliament as scrutiny of state bank practices continues to intensify amid Sri Lanka's ongoing economic recovery efforts.
💬 Join the Discussion 3
See what readers are saying — and add your view.
Is this only happening in Batticaloa or whole country? Feels like everywhere same story.
Finally someone is saying it out loud. Small ppl suffer while big loans get written off quietly.
Exactly. My uncle lost his land but politicians friends get extension after extension.