The primary task In the review discussions conducted by the representatives of the IMF has been the restructuring of the domestic debt. It has severely impacted the private banks in Sri Lanka, and it has been revealed that the bankers’ association is closely monitoring it.
The Bankers’ Association of Sri Lanka had previously stated in a statement that before restructuring the loans given to the government by the private banks in Sri Lanka, a comprehensive discussion involving all parties should be held considering the extreme sensitivity of the issue. However, the government has reached a review of the future measures and the progress so far with the representatives of the IMF without initiating such a discussion.
An equivalent amount of 27% of the total assets owned by private banks in Sri Lanka has been given as loans to the government. By the end of last year, the total assets of those banks were Rs. 8369700 million. Government Treasury Bills, Treasury Bonds, Sri Lanka Development Bonds and International Sovereign Bonds have lent Rs. 2046100 to the government.
Commercial Bank, Hatton National Bank, Sampath Bank, National Development Bank, Seylan Bank, Nation Trust Bank and Pan Asia Bank are among the leading institutions that have given loans to the government. These banks have given loans to the government in the form of Rs. 1070200 through treasury bonds, Rs. 536800 through international sovereign bonds, Rs. 501500 through treasury bills and Rs. 137600 through development bonds.
