Central Bank says this would be followed by one-to-one discussions with all banks and non-bank financial institutions to guide the respective institutions in accordance with the newly announced plan
“The Central Bank will also closely monitor and support the consolidation process in order to ensure that it will be smooth and constructive,” announced the Bank in a statement issued.
The regulator also requests institutions involved in the process to ensure that there will not be any retrenchment of staff in banks and non-bank financial institutions as a result of this consolidation process.
It also directs the respective institutions to align their immediate future business plans, recruitment and capital expenditure to be in line with the new developments that are to take place over the next few months.
Both the 2014 Budget proposals and the 2014 Road Map of the Central Bank outlined a series of proposals aimed at consolidating the country’s financial sector.
It proposes Banks to merge, consolidate or restructure their business operations while Non Bank Financial Sector Institutions were also encouraged to merge towards reducing the number of such companies to 20 from the present 58.
“In order to steer Sri Lanka towards the economic goals set for 2016 and beyond, a stable financial sector with strong and dynamic financial institutions has to be created,” further announced the Bank.