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Post-war recovery project receives unexpected boost due to increased inward remittances
Tamil Diaspora renew faith in BOC-led banking system
June 27, 2011, 8:31 pm
BOC mobile unit at Menik FarmBy Shamindra Ferdinando
With the collapse of the LTTE, many Tamils living overseas have begun transferring money to their relatives, particularly the war displaced in the Vanni region. Expatriate Tamils are utilizing the services of the State Banking network, with the Bank of Ceylon (BOC) accounting for the lion’s share in the growing inward remittances market.
Banking sources told The Island that there had been a marked increase in remittances from many countries, including Norway, Canada, US, Malaysia and Singapore.
Since the conclusion of the war in May 2009, thousands of new accounts have been opened with two State banks, BOC and People’s Bank as well as with Seylan Bank, National Savings Bank, Sampath Bank and Commercial Bank. The BOC is the main beneficiary of the banking boom in areas once under LTTE control. Northern Tamils have received well over one billion rupees from their relatives living abroad through the BOC since May 2009. Other State and private sector financial institutions, too, have stood to gain from the surge in the inward remittances market, according to banking sources.
Intelligence sources told The Island that the ongoing investigation by the Government of the Netherlands into LTTE financial networks would prove that funds raised abroad had never been utilized for the benefit of the war affected. Theirs was an operation to bolster the group’s power to acquire arms, ammunition, and equipment and bribe various influential persons in the West, sources said. The LTTE went to the extent of threatening those living in areas under their control to force their loved ones to make regular payments to the war effort.
Presidential Task Force for Resettlement, Development and Security in the Northern Province said that a total of Rs. 1,908.71mn had been deposited in 50,982 new accounts opened by the war displaced following the end of war in May 2009. The new accounts comprised 36,954 with BOC, People’s Bank (9,334), Sampath Bank (170), National Savings Bank (863), Seylan Bank (3,326) and Commercial Bank (335).
People who returned to the army controlled areas during the war deposited Rs. 1,908.71 mn with banks.