NTUC Chairman K. D. Lal Kantha has requested Prime Minister Ranil Wickremesinghe to abolish the budget proposals which cripples state banks.

In a letter addressed to the Prime Minister, Lal Kantha stated that new budget threatens state, semi-government and private sector workers’ rights.

Lal Kantha also pointed out that the budget proposed several new measures regarding banks. Accordingly, banks should cease engaging in leasing business and new exposure limits on mortgage loans and restrictions on cash withdrawals (2% tax on above-10 million cash withdrawals) are introduced.

The new proposals have a negative impact on banking sector and weakens financial strength which leads to a financial crisis in state banks, Lal Kantha has stated.