The Sri Lanka Banks’ Association (SLBA) has welcomed the assurance by the Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe that financial sector stability will be maintained.
In a statement, the SLBA noted that the Dr. Weerasinghe’s public announcement covered important issues, and included a categoric assurance that the forthcoming Domestic Debt Optimisation (DDO) or Domestic Debt Restructuring (DDR) will not impact financial system stability and will not in any way adversely affect depositors in banks or non-bank financial institutions.
The Association also welcomed the Governor’s statement that the DDO/DDR strategy has to be announced and must follow the proper approval process from the Cabinet of Ministers, Committee of Public Finance and the Parliament via a debate, apart from having been discussed with the CBSL and Ministry of Finance. The statement added that the SLBA represents all Licensed Banks in Sri Lanka and encourages cooperation among members and coordination of banking sector operations as required. “Within this ambit, a key aim is assisting in maintaining and developing a sound banking structure in Sri Lanka in accordance with policy and regulatory frameworks set by the Central Bank of Sri Lanka,” the statement added.