Business

CBSL denies license cancellation possibility

The Central Bank of Sri Lanka (CBSL) categorically stated that the licenses of banks of non-banking financial institutions cannot be cancelled purely due to the lack of co-operation extended to the tourism sector relief measures, initiated by the Government.

Convening a press conference earlier last week to announce a new set of initiatives to revive the tourism sector of the country, Minister of Tourism Development, Wildlife, and Christian Religious Affairs John Amaratunga noted that financial institutions have been sluggish in providing economic relief packages to the tourism sector.

“Some leasing companies are still dragging and not agreeing with the relief packages. We will have a meeting in the presence of the CBSL Governor, CEOs of banks, and leasing companies at the Parliament.

We will tell them they should implement the decision taken by the Government. Otherwise, we will request to cancel their license,” the Minister noted.

However, speaking to The Sunday Morning Business, a senior official of the CBSL said that neither the license of a financial institution can be cancelled nor can any action be taken against a CBSL licensee just because the particular bank or leasing company is not co-operating with the Government’s relief measures, adding that the relief packages is a business decision that should be taken by the respective banks, and the Government cannot force any banks on this matter.