The Central Bank of Sri Lanka (CBSL) must take responsibility for failed financial institutions which are operated under the Bank’s supervision, Prime Minister Mahinda Rajapaksa said.
Issuing a press release, the PM’s Office said the PM made the observation during a discussion held on The Finance Company PLC at the Temple Trees.
The Continuous failure of financial institutions supervised by the CBSL and the malpractices within these organizations has led to the disapproval of the Government.
The PM who pointed out that this has further caused a decline in the trust placed on State financial institutions within the public, called for new laws to be created to address malpractices in these organizations, the Press release said.
Meanwhile, Deputy Governor of CBSL H. A .Karunaratne, who attended the discussion said the PM had instructed to immediately commence the payment of the depositors of The Finance Company PLC.
Karunaratne said 97% of the payment will be completed from next Monday (08), while the remaining 3% will be paid later.
Minister Ramesh Pathirana, who participated in the discussion, said a formal investigation must be conducted into financial institutions supervised by the CBSL involved in financial fraud.
Minister Bandula Gunawardena, who was also present at the discussion, had pointed out that justice must be provided to the depositors of The Finance Company PLC and depositors of other failed financial institutions as well.
Deputy Governor of CBSL H. A .Karunaratne had then pointed out that the Finance Company PLC despite being under the supervision of the CBSL had been operated by an independent Board of Directors and there is a possibility of handing the institution over to an investor.
(Newswire)