Home » Govt to tackle Banks risk of collapse and reform economic stabilization laws

Govt to tackle Banks risk of collapse and reform economic stabilization laws

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The Sri Lanka Banking sector protection measures from the risk of collapsing and reform of laws relating to the economic stabilization of the country will be presented to the country at the end of December.

Official reserves and net foreign assets in the Sri Lanka banking system have been depleted, as the country continued to service debt and facilitate imports without access to international financial markets.

Banks Balance Sheet in Sri Lanka decreased to Rs1.533 trillion in August from Rs1.534 trillion in July of 2022..In the long-term, the Sri Lanka Banks Balance Sheet is projected to trend around Rs. 1.584 trillion in 2023, according to Finance Ministry econometric models.

The Central Bank has recently submitted report on the present status of the banking sector and its measures taken to prevent the risk of collapsing the banking system to the economic stability sub committee functioning under the national council.

Chairman of the National Council sub-committee on identifying short- and medium-term programs related to economic stabilization, Chairman of the subcommittee Patali Champika Ranawaka, MP stated that steps will be taken to present the new proposals for the improvement of the banking, insurance and business sectors in the country by next December.

He said that proposals for the reform of laws related to the economic stabilization of the country will be presented to the country at the end of December.

The chairman said that it is important to discuss whether there are shortcomings in the law among the reasons that led to the country’s economic bankruptcy, and to discuss the next steps to be taken.

The experts participated in the committee expressed their views on the reforms that should be made in the country’s legal system in order to obtain local and international support to create economic stability in the country.

The role of the Central Bank, the role and accountability of the Treasury, the role and accountability of the government, the accountability of government officials, politicians and the business community dealing with them were discussed at the committee. Also, proposals were presented on the need for a large-scale anti-corruption process and the importance of implementing the law on assets and liabilities.

Officials of the Ministry of Justice said that 55 new laws and amendments to existing laws are currently underway.

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