Financial Times - Unnecessary panic over dormant accounts

The Central Bank and the Sri Lanka Banks’ Association last week assured depositors – especially Sri Lankans overseas who rarely operate their accounts – that dormant accounts are safe and untouched.

But one banker also said the timing of the announcement may have been the cause of much of the panic. "In a situation where the country's economy is facing a crisis ... everyone thought the government was resorting to this move to get money," he said.

This came amidst widespread fears that a decision for commercial banks to transfer all dormant accounts that have not been operated for 10 years to the Central Bank meant the government was seizing these accounts.

“The sole objective of identification and reporting of abandoned property or dormant accounts as legislated as far back as 1988, has been to collect, safeguard and return such property to their lawful owners. The public is, therefore, assured that there is no move to seize the bank accounts of the customers,” the Central Bank said reassuring depositors and denying media reports that triggered some panic.The Sri Lanka Banks’ Association said that even after an account is transferred to the Central Bank, a customer requiring to reactivate an account or withdraw funds could do so after properly identifying himself or herself.