Press briefing of Cabinet Decision taken on 2024-04-08 (Subject to Confirmation at the next Meeting)

Implementation of the proposed reforms of State-Owned Banks

- Due to the weaknesses in the fields of governance, risk management and supervision of the state-owned banks, these banks had to face severe difficulties during the recent economic crisis. Therefore, with the aim of preventing the recurrence of such difficulties, a number of reforms to be carried out in those banks have been identified by an expert committee consisting of the members of the International Monetary Fund, World Bank and Central Bank of Sri Lanka. As a Structural Benchmark of the Extended Fund Facility Programme provided by the International Monetary Fund, as well as the basic activities under the Development Policy Operations implemented by the World Bank, the said reforms have to be implemented promptly. Accordingly, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to implement those reform proposals, was approved by the Cabinet.