Colombo, Nov 21 (NIA) – Sri Lanka’s Joint Opposition member, Udaya Gammanpila, on Monday called on the government to ban the Rs.5000 bank notes in the island nation to catch money launderers and curb the use of black money.
In a media briefing held in the capital, Gammanpila hailed Indian Prime Minister, Narendra Modi’s decision to ban the Rs.500 and Rs.1000 bank notes which had resulted in millions of unaccounted cash being confiscated throughout the nation.
Gammanpila said that such a step in Sri Lanka would reveal the true money launderers and the tax evaders.
He further pointed out that in 1973, Sri Lanka had also implemented a similar rule by banning the then highest valued bank note of Rs 100 which resulted in large amounts of unaccounted cash being confiscated.
Financial panic has spread across India within the past two week after Modi, in a surprise announcement to his nation on Oct 8 said the Rs.500 and Rs.1000 bank notes will be withdrawn from the country’s financial system from Oct 9 midnight, delivering a severe blow to money launderers and causing pain amongst millions of citizens holding cash savings.
The sudden ban has caused long queues to line up outside banks and ATMs since they reopened last Thursday, two days after Modi’s shocking announcement.
Indians rely heavily on cash for daily transactions and those living in rural areas or who do not have bank accounts have been hit particularly hard.
Modi said he had been “pained” by the hardships people were facing, but insisted the move would ultimately benefit poor Indians.