Registration of Cooperatives as Lending Institutions Suspended Amid Financial Irregularities

COLOMBO (News 1st) - Deputy Minister of Trade, Commerce and Food Security, R.M. Jayawardena says that the registration of cooperatives as lending institutions has been suspended until further notice.

The decision follows financial irregularities committed by officers elected through cooperative elections.

Deputy Minister Jayawardena highlighted several significant cases of fraud involving rural banks, including the Maharagama Bank, which defrauded over one billion rupees, the Ratmalana Rural Bank, with a similar sum, and the Gampaha Bank, where fraudulent activities amounted to approximately 750 million rupees.

He emphasized that cooperatives seeking to register as lending institutions by raising money and converting into such institutions will not be allowed to register until further notice. 

Additionally, he assured that justice would be given to the victims, and the relevant Act is ready to be amended to address these issues.