Cash flow low in Jaffna due to closure of banks

[TamilNet, Friday, 18 August 2006, 13:40 GMT]
Cash flow is decreased to minimum among the people in Jaffna district following the continuous closure of branches of state banks for about a week since the outbreak of fresh fight between the Sri Lanka forces and Liberation Tigers of Tamil Eelam (LTTE) fighters. Customers who have saving and current accounts in state banks are unable to withdraw their money for their immediate use, civil sources said.



However customers of two private banks are able to withdraw their money for their urgent purpose that is also through the Automated Teller Machine (ATM) card. But the amount is limited to about nine hundred rupees at a time. Private Banks are also closed since the outbreak of fight.

The Jaffna district is under curfew imposed by the Police since August 11 with relaxation a few hours a day. Hundreds of people who have accounts in private and public sector banks are seen queuing daily in front of the bank branches during the relaxation of curfew hours.

People fear the cash flow through banks would come to a halt if required money is not supplied to banks from Palaly military base where Jaffna District Peoples' Bank has kept its money for safety.

Meanwhile acute shortage for food and other essential material prevails in the peninsula as all land and sea transport of food items has come to a halt.