CBSL unaware of restructuring of state banks – Governor

The Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe has assured that no decision pertaining to the restructuring of state banks has been made thus far.

Speaking at a press conference held this afternoon (05 Oct.), Dr. Weerasinghe explained that the CBSL has not been informed of any such decision to restructure state banks.

The Governor made these remarks in response to a question raised in this regard by a journalist, who claimed that six state banks were amongst a list of government institutions set to be divested, citing the State Owned Enterprise Restructuring Unit (SRU).

The question raised claimed that six state banks including the Bank of Ceylon (BOC) were amongst 31 state institutions which were listed, by the SRU, to be divested. 

“As per this notice, these 31 state institutions will first be registered under the Companies Act, and then be put under the control of a holding company”, the journalist claimed.

Dr. Weerasinghe, however, asserted that the CBSL has not received any communications pertaining to such a matter, further emphasising that the SRU is unlikely to be involved with actions concerning state banks.

The CBSL Governor explained that only the CBSL and the Ministry of Finance are involved in matters concerning state banks, with the former governing their regulations, and the latter bearing their ownership.

Thus, Dr, Weerasinghe said, “We have no knowledge of this, and we were not informed of any such matter”, further highlighting that as per the usual procedures followed, the Banking Act must first be amended in order for any changes to be made within the state banking system.