Master plan on financial sector consolidation

As stated by President Mahinda Rajapaksa in his Budget speech and as set out in the Road Map of the Central Bank on January 2 to steer Sri Lanka towards the economic goals set for 2016 and beyond, a stable financial sector with strong and dynamic financial institutions has to be created, a media release from the Central Bank said.

Accordingly, a Master Plan on the Consolidation of the Financial Sector to achieve such an outcome was articulated by the Governor to the relevant stakeholders on Friday at the Central Bank.

One-on-one discussions were held with all banks and non-bank financial institutions to guide these institutions in accordance with the new plan. The Central Bank will also closely monitor and support the consolidation process to ensure that it will be smooth and constructive.

The Central Bank has called upon all institutions involved in the process to ensure that there will not be any retrenchment of staff in banks and non-bank financial institutions as a result of this consolidation process, and to align their immediate future business plans, recruitment and capital expenditure, to be in line with the new developments over the next few months, the release said.