SL stands for global front against bank hackers

Finance Minister Ravi Karunanayake being interviewed by a television channel on the sidelines of the ADB Annual Meeting in Frankfurt, Germany

By Uditha Jayasinghe in Frankfurt

Shaken by the $ 81 m Bangladesh bank heist, Sri Lanka yesterday called for global regulatory institutions to “eradicate” any chance of theft and welcomed efforts by member nations of the Asian Development Bank (ADB) to make international money transfers safer.  Finance Minister Ravi Karunanayake delivering Sri Lanka’s statement at the ADB Governors’ meeting at the global lender’s Annual Meeting in Frankfurt insisted that digital heists created negative impressions of economies and needed to be stamped out.

“It is with much concern and trepidation we have observed the events and evidence unfolding relating to transfer of funds of Asian countries to countries of different continents through illegal and irregular means.”

“Such endeavours create a negative impression on the economies of countries from which such funds are siphoned off and we look forward to the attention of all regulatory institutions to ensure that such operation s are curtailed and eradicated,” he told the gathering of all 48 member countries.

The issue of cyber security came to the fore across the world after hackers broke into the system of the Central Bank of Bangladesh and stole about $101 million from its account with the Federal Reserve Bank of New York. A $ 20 million transfer to Shalika Foundation in Sri Lanka resulted in the heist falling apart after a bank teller at the local Pan Asian Bank alerted authorities to the misspelling on the documents.  

“A combined effort by our member nations to counter such endeavours would be most welcome. I also wish to elaborate that such illegal and irregular options could have a critical effect on economies of countries like Sri Lanka unless corrective action is implemented on a priority basis,” Karunanayake said.

Most of the Bangladesh Bank funds lost in the cyber-attacks ended up in Manila where the ADB is headquartered. This promoted ADB President Takehiko Nakao to tell the Annual Meeting that no organisation, even the ADB, was immune to cyber-attacks.

Security experts around the world have now raised red flags over the SWIFT transfer system used around the world to transfer money between banks and called for stronger safeguards and standards.

The Finance Minister also outlined the economic challenges faced by Sri Lanka but was upbeat of future prospects, insisting the country is getting set for an “unparalleled” level of growth over the next few years.

“The resilience of the people of Sri Lanka in the face of economic adversities had been amply demonstrated during the decades of internal strife. We are on the road to prosperity on a platform of good governance and transparency amidst a committed process to achieve national reconciliation and economic freedom.”

ADB was also praised for its “immense contribution” to Sri Lanka’s growth and assisting the country to move towards accelerated growth.

“I am sure that Sri Lanka would be a major nation to be part of Asia’s success during this century. Now we are on the path of progress and the next few years will herald a period of unparalleled economic growth and social prosperity. The guidance, support and assistance of the ADB will enhance and provide the ideal impetus for us reach our goals and objectives in creating a better tomorrow for the people of Sri Lanka.”

Private sector is core of growth: ADB

Developing the private sector and creating jobs is critical for a vibrant and sustainable region, Asian Development Bank (ADB) President Takehiko Nakao said yesterday, calling for more public-private partnerships for growth.

Nakao emphasised that the private sector is Asia’s “engine of growth”. By driving innovation and creating opportunities, he said the private sector has become “the basis for Asia’s vibrant future”.

In 2015, ADB directly provided $2.6 billion in finance to private sector companies and projects, up 37% from 2014, Nakao told the opening session of the ADB Annual Meeting in Frankfurt, Germany.   

“It ranged from supporting financial sector development, to delivering infrastructure, to providing critical social services through the private sector—all with a strong focus on poorer countries,” he said.

For every dollar ADB provides, it mobilises at least $4 more in commercial financing. ADB is also promoting public-private partnerships by helping prepare bankable projects to attract private investment.

About quality jobs, ADB is contributing to job creation and improved workplace conditions by supporting education and skills development for the youth, particularly young women; promoting core labour standards; and investing in key infrastructure, such as power plants, roads, and railways, especially in fragile and conflict-affected countries.

ADB’s own loan and grants approvals hit a record $16.3 billion in 2015, 21% higher than in 2014. With an additional $10.7 billion in co-financing, total financial support to developing member countries reached $27 billion last year, also a record high.

Nakao reviewed the economic outlook of the region and observed that Asia’s long-term growth potential is strong. In many countries, the population remains young, and is growing. This will bring large demographic dividends if countries can create quality jobs.

“The middle class is expanding, providing a basis for strong consumption. There is still much scope to grow to catch up with advanced economies.”

Nakao emphasised that “in order to realise their full growth potential, Asian countries must maintain sound macroeconomic policies, invest more in infrastructure, human capital and technology, develop efficient financial markets, and improve the investment climate”. (UJ)