NSB lends Rs 238 bln to the government to strengthen the economy

By Bandula Sirimanna

The National Savings Bank (NSB) has lent a whopping Rs 238 billion to the government to strengthen the economy and for productive ventures, and is urging investors and depositors not to be unnecessarily alarmed as their money is safe with the bank.

NSB Chairman of NSB Upali Gunaratne, addressing the launch of a new NSB pension scheme, said the bank has allocated a sum of Rs.2.5 billion for the construction of a housing scheme for war heroes and another sum of Rs. 10 million on a pre-school in the sme area.

He asserted that since its beginnings in 1971, NSB has played a pivotal role in the nation’s economy and the bank has recorded a profit of .Rs. 3.5 billion in 2006. Gunaratne said that NSB has launched the pension scheme as it is a socially responsible financial institution that can ably assist every Sri Lankan in every walk of life.

The pension scheme is a 100 per cent government guaranteed one and available to anybody. It is a contributory scheme, which will enable a member to obtain financial remuneration upon retirement, cover selected critical illnesses and provide hassle free housing loans.

Disclosing ongoing ventures, Gunaratne said the bank has obtained NRFC licenses and the ‘Eurojyro’ connection with the postal savings banks in foreign countries to enable Sri Lankans to make their remittances through these channels. The Eurojyro connection has been established with 14,000 post offices in Italy, 26,000 in Japan, 2,400 in South Korea, 2,800 Malaysia and also with Germany, France, UK, New Zealand and Australia.

Central Bank Governor Ajith Nivard Cabraal said that there is no proper pension instrument in the country and the majority of the people had been deprived of such benefits. He added that the NSB+ pension scheme fulfills a long felt need of self employed and workers in the private sector as well as three wheel drivers, bakery workers and other labourers.