Consolidation process of Sri Lanka’s financial sector smooth, says CB
View(s):Sri Lanka’s Central Bank (CB) says the consolidation process aimed at reducing by half the number of finance companies through mergers and acquisitions and merger of the two main development banks is going on smoothly.
The CB said in a statement that the process would not, in any way, affect current transactions and deposits by customers of banks and finance companies. It said apart from the January 17 seminar where the rationale of the consolidation was explained to bankers and finance company officials as well as auditors and other concerned parties, the CB also held one-on-one meetings with almost all “boards of directors and senior management of the local banks and Non Bank Financial Institutions (NBFIs), at which the expectations of the consolidation process was further clarified and specific issues pertaining to particular institutions were discussed in detail”.
The statement said the CB informed the banks and NBFIs to approach the consolidation process in a professional manner by seeking specialised IT, Legal, Tax and Human Resources services in order to ensure the objectivity and integrity of the process. Members of a special unit headed by the Assistant Governor (dealing with the process) were introduced to the banks and NBFIs at these meetings. In keeping with the request of the CB, banks and NBFIs agreed to submit their preliminary proposals by 31March 2014.
“A meeting was also held with key office bearers of the Ceylon Bank Employees’ Union, at which all clarifications sought were provided by the Governor of the Central Bank and other senior officials of the Central Bank,” the statement said.