Poverty As A Business: Financial Institutions In Sri Lanka

By Mithula Guganeshan –November 25, 2015

Mithula Guganeshan

Majority of Sri Lankan’s, almost 84% are either financially struggling or suffering according to the survey done by Gallup Healthways in 2014. In other words, people are unable to meet their current financials and future obligations while making choices that allow enjoyment of life. Everything can be attained higher education to dream house however only at the cost of obtaining a loan.

Increasing debt levels not only erode earning potential of the targeted population while serving as a blockage to progress far, resulting in greater poverty, exclusion and dependence.

As stated by Sir Josiah Stamp, Director & President of the Bank of England during the 1920’s, the modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the earth. Take it away from them, but leave them with the power to create money and control credit, and with the flick of a pen, they will create enough money to buy it back again. Take this great power away from the bankers and all the great fortunes will disappear, and they ought to disappear, for this would be a better and happier world to live in. But if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money and to control credit.

Financial Institutions in Sri Lanka needs to maintain a Statutory Reserve Ratio (SRR) of only 6%, the proportion of rupee deposit liabilities maintained as deposits within Central Bank apart from the money provided as credit to the customers. SRR justifies and confirms the truth that the banks create money out of nothing. The twisted modern banking system grabs a share of our earnings continuously in the form of loan repayment and interests, interestingly from money created out of nothing. A witty method used to make the rich get richer while explaining the enormous wealth gained by the key shareholders of financial institutions.

CEO’s of financial institutions proudly claims on newspapers the profits recorded in millions, resulted from higher rates of lending. Sri Lanka still remains as a country with higher borrowing costs which results in an escalated cost of product & services during each value addition stage. How is it fair that the financial institutions charge massive amounts as interests for money that clearly doesn’t even exist? In the past Usury, the practice of lending money at excessive interest rates was prohibited and condemned as it was considered the exploitation of the needy, mainly on ethical, religious and moral stances. However, today’s economy functions only by continuously injecting credit into the system. If the majority of the population doesn’t benefit, why does such a financial/economic system exist? How long would this ignorant system continue, where the rich feed by eating off from the poor?                                                    Read More