The Cabinet of Ministers has approved a proposal seeking to enter into necessary agreements with the World Bank to secure financing under the Sri Lanka Financial Sector Safety Net Strengthening Project.
The project was designed to boost the financial and institutional capacity of the Sri Lanka Deposit Insurance Scheme (SLDIS), which is managed by the Central Bank of Sri Lanka (CBSL).
The financing will help boost reserves of SLDIS which could be used towards the payout to insured depositors of banks and licensed finance companies.
The project will support institutional strengthening of the SLDIS in line with international good practices for effective deposit insurance schemes.
The Cabinet of Ministers gave the nod to implement the financial sector safety net strengthening project under World Bank funds on 24 April 2023.
Later, on 9 November, the World Bank’s Board of Executive Directors approved $150 million in financing for Sri Lanka to strengthen the resilience of its financial sector.