Divi Neguma Bill dives through Diyawanna Oya!

• Amended version wins 117 majority votes in Parliament with 159 for and 42 against

By Ashwin Hemmathagama

Our Lobby Correspondent

The controversial Divi Neguma Bill, which was debated in Parliament previously and contested in the Supreme Court, was passed by the House following amendments.

The Bill following its second reading won 117 majority votes, with 159 votes in support with the SLMC also siding with the Government and 42 against with the UNP, TNA, and DNA MPs opposing during the poll held after the Adjournment Debate.

Moving yesterday’s debate, Minister of Water Supply and Drainage and Chief Government Whip Dinesh Gunawardena stated that the Divi Neguma Bill was a turning point for Sri Lanka and would be the most important decision taken for development since independence.

“There are 1,044 Samurdhi banks operating in Sri Lanka. These banks provide financial assistance for grassroots to engage in some small development process and make a living. No other banks cater to the grassroots and provide loans with absolutely zero guarantees or collateral. The current amendments to Divi Neguma Bill will further strengthen this process,” said Minister Gunawardena.

According to UNP MP Sajith Premadasa, despite the extremely noble motives stated in the Bill to alleviate poverty, serious issues will arise with powers being centralised with the Minister in charge of Divi Neguma.

“The Bill clearly shows the centralisation of power and limited public participation. The Bill also creates doubt about the job security of 27,000 Samurdhi officers and their rights. The appointment of the Director General is another shady area where qualifications are not listed. The Divi Neguma Bill is not responsible towards the people, lacks transparency, and accountability. You need to remove these issues from this Bill,” said MP Premadasa.

However, Minister of International Monetary Cooperation and Deputy Minister of Finance and Planning Dr. Sarath Amunugama commended the UPFA Government moves that reduced poverty in Sri Lanka during the past decade.

“In 1990/’91, poverty was reported at 26.1 per cent of the population. This was 15.5 per cent in 2006/07 and has reduced to 8.9 per cent in 2009/10. We have a journey but need to understand the issues ahead of us. For us to face these hurdles, the Divi Neguma Act is a remedy. There are three sections in this Bill – how to involve the people in development, banking system fuelled by the society – micro credit, and creation of common authority to fast-track development by establishing the Department of Divi Neguma Development.”

The Divi Neguma Bill was presented to Parliament in October last year seeking approval in order to establish the Department of Divi Neguma Development by amalgamating the Samurdhi Authority of Sri Lanka Southern Development Authority of Sri Lanka and the Udarata Development Authority of Sri Lanka to establish Divi Neguma community based organisations at rural level and to provide for a coordinating network at district level and national level; to establish Divi Neguma community based banks and Divi Neguma community based banking societies in furtherance of the economic development process and in giving effect to the national policy of alleviating poverty and ensuring social equity.

According to the Ministry of Economic Development, it has become necessary to improve the individual, family and group centred livelihood development activities and Divi Neguma intends to mobilise people into a national development process at community level, establishing Divi Neguma community based organisations, thus building up a regional, district, and national level coordinating network and developing and promoting a microfinance banking system.

The objective of the department is to carry out such development activities as required to alleviate poverty and to bring about a society guaranteeing social equity; to promote the individual family and group-centred livelihood economic development activities; to ensure food security for each individual and family; to mobilise and empower people to speed up national development; to provide microfinance facilities for the purpose of promoting the livelihood development of people; to develop physical and social infrastructure facilities as may be required for the development of the livelihood of people; to carry out such studies and research as may be required relating to the economic and social upliftment of people; to develop the human capital in order to uplift living standards of people; and to create a social security network for those who are in need of social security.