11 April 2024 12:18 am
The reforms to the governance of Sri Lanka’s state-owned banks will soon kick off, with the Cabinet approving the implementation process, this week.
On Monday, the Cabinet of Ministers affirmed the resolution furnished by President Ranil Wickremesinghe, as the Finance, Economic Stabilisation and National Policies Minister, to implement the reformation proposals.
The set of reforms for the state-owned banks was identified by a committee consisting of specialists from the International Monetary Fund (IMF), World Bank (WB) and Central Bank of Sri Lanka.
The reforms were suggested to prevent the re-occurrence of constraints that were faced by these entities during the economic crisis. Due to the shortcomings existing in the sectors of the entire administration, risk management and supervision, among others, the state-owned banking institutions faced major issues in the recent past.
The Cabinet stressed that the reformations should be implemented as a structural requirement included in the comprehensive financial facilities programme provided by the IMF as well as the fundamental activities under the development policy monitoring implemented by the WB.