Banks barred from leasing activities

Banking sector mergers resurface, slew of marriages between small state banks  

 The national unity government following the footsteps of the previous regime is advocating mergers and acquisitions (M&As) in the country’s banking sector, in a “voluntary” form, allowing shareholders to decide the best course of action. 
The Lankan banking sector is overcrowded with 32 banks. 
“Given that our banking sector comprises a few large systemically important banks and a few smaller banks, we encourage voluntary mergers of banks that will result in stronger balance sheets, which in turn will enable better ratings and wider access to markets both domestic and foreign,” Finance Minister, Ravi Karunanayake said.
However, Karunanayake stressed that banks entering into possible M&A negotiations should not lay-off even a single employee, reminding the politically-popular measures followed by the past regime.   
“I reiterate that such mergers should be carried out while ensuring the job security of all related staff.”