Sri Lanka’s Cabinet of Ministers have approved the preparation of a draft bill to amend the State Mortgage and Investment Bank Act, No. 13 of 1975, in order to enable the licensed specialised bank better competitiveness in the existing business environment, a Cabinet decision released yesterday (12) said. 

“The State Mortgage and Investment Bank, which came into operation on 1 January 1979, was established by the State Mortgage and Investment Bank Act, No. 13 of 1975, by merging the Lanka Mortgage Bank and the Agricultural and Industrial Credit Corporation.”

According to the decision, due to certain limitations of the current Act, the bank has not been able to achieve its operational  goals and thereby maintain an expected profit. “Therefore, the need to amend the Act to suit the current business environment and to achieve the desired goals and objectives has been identified.”

“Accordingly, the proposal submitted by the President in his capacity as the Minister of Finance, Economy and Planning to instruct the Legal Draftsman to prepare a draft bill to amend the said Act was approved by the Cabinet of Ministers,” the decision said.