The Sri Lanka Banks Association (SLBA) says they accept the Central Bank (CB) Governor’s assurance regarding the Government’s expected stance on debt restructuring.
The Sri Lanka Banks Association has thus welcomed the assurance given by the Governor of the Central Bank of Sri Lanka (CBSL) Nandalal Weerasinghe that the stability of the financial sector will be maintained and the clarification provided regarding the related process. In the CBSL Governor’s statement important issues have been covered and a specific assurance has been included that the upcoming Domestic Debt Optimization (DDO) or Domestic Debt Restructuring (DDR) will not affect the stability of the financial system and will not in any way adversely affect the depositors of banks or non-banking financial institutions, the SLBA said. In addition to discussing with the Central Bank and the Ministry of Finance, the Union also accepted the statement made by the Governor of the Central Bank that the DDO/DDR strategy should be published and the appropriate procedure should be followed to obtain the approval of the Parliament, the Cabinet and the State Finance Committee through a debate.
In a statement the organisation further said the Sri Lanka Bank Association represents all licensed banks in Sri Lanka and encourages cooperation among members and coordination of operations in the banking sector as required.