UNP claims nexus between Sri Lanka and Seychelles over Swiss accounts

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MP Harsha de Silva asks ‘Why did BOC open a branch in Seychelles?’
Alleges Central Bank refusing to investigate previous list of Lankan depositors

UNP MP Harsha de Silva shows off a document connected to Swiss banking during a media briefing at Sirikotha yesterday – Pic by Pradeep Pathirana

Sri Lankan deposits in Swiss bank accounts are now being listed under residential addresses in offshore havens like Seychelles, as Switzerland tightens financial regulations in line with European banking standards, United National Party Parliamentarian and Economist Dr. Harsha De Silva revealed yesterday. According to the UNP Legislator, the most recent report from the Swiss Central Bank reveals that deposits by Sri Lankan citizens amounted to 83 million Swiss Francs in 2013, down from 87 million in 2010. De Silva said that in 2013, 65 million Swiss francs were in the form of indirect deposits. “After the names of some individuals with Swiss bank accounts were revealed a few years ago by an international journalists’ group, Sri Lankans are now afraid of having their names exposed again. So many of these deposits now have addresses based in the Seychelles,” De Silva charged. Seychelles, a country with a population of less than 100,000 people was gaining notoriety in the world as a major offshore haven and sanctuary for large scale money launderers, the opposition Legislator told a press briefing at Sirikotha yesterday. Deposits from Seychelles in Swiss bank accounts have increased exponentially from 1.7 billion Swiss francs in 2010 to over 3 billion Swiss francs in 2013. The Sri Lankan Government has been strengthening ties with the South East African island nation, with President Mahinda Rajapaksa undertaking a State visit there last month and the country’s largest State bank opening a branch on the island. Sri Lanka’s national carrier SriLankan Airlines also commenced direct flights to Seychelles late last year. “Isn’t it strange that the Bank of Ceylon recently opened a branch in Seychelles, where only 90,000 people live, where there are barely any Sri Lankans to serve? Wouldn’t a branch have been more useful in a Middle Eastern country where thousands of Sri Lankans live and work?” he remarked. De Silva said that a recent investigative report in the Economist magazine had revealed Seychelles links with powerful criminal mafias in other parts of the world and companies within companies within companies. “The country that has less than 100,000 people have 140,000 foreign companies. It’s virtually impossible to tell who owns the corporate entities,” the UNP MP explained. The UNP Legislator explained that the Seychelles Government had recently granted what has been described as the greatest gift to money launderers, by promising refuge to any criminal elements provided they could deposit $ 10 million in a bank on the island. “Among those who have availed themselves of the opportunity is Tunisian dictator Ben Ali’s son,” De Silva charged. He said that countries like Belarus and Belize were also invested in Seychelles. It was ironic, the UNP MP said that when Indian Prime Minister Narendra Modi was demanding a list of Indian citizens who hold secret accounts in Switzerland, that the Sri Lankan Central Bank is flatly refusing to investigate the list of Sri Lankans already in the public domain.

Matara-Beliatta rail track most pricey in the world: Harsha

The proposed 27 kilometre railway track connecting Matara to Beliatta in the Hambantota District to be built using a Chinese loan facility will be one of the most expensive in the world at $ 14.7 million per kilometre, the main opposition UNP charged yesterday. Quoting an estimation made by former State Engineering Corporation General Manager Tudor Wijenayake, UNP MP Harsha De Silva said that the Government cost estimate for the 27km railway track included bridges that had already been built. “Two of those kilometres were already constructed during President Ranasinghe Premadasa’s administration. So in truth there is only 25 kilometres of track to build,” the UNP Lawmaker charged. Citing an Iowa University report on cost estimation for railway construction in the US, De Silva said that even in the most mountainous regions, the cost per kilometre of track was $ 5.3 million. “Are there mountains in Beliatta? Are there rocks and tunnels to cut through in the area?” De Silva charged. The UNP MP said it was ironic that a railway track that was going to be one of the most expensive in the world is cutting through one of the country’s poorest areas, where farmers were struggling for water to cultivate their farms.