Cabinet nod to restructure Central Bank’s Non-Bank Financial Institutions Supervision Dept.

The Cabinet of Ministers has approved a proposal to completely restructure the Department of Supervision of Non-Bank Financial Institutions of the Central Bank of Sri Lanka and to formulate a new institutional structure to regulate Finance Companies, the state information office said.

President Gotabaya Rajapaksha appointed a presidential commission on 09.01.2020 to investigate, inspect and report the alleged wrongdoings, irregularities and malpractices of the Edirisinghe Trust Investments Ltd. The report that contains observations and recommendation of the aforesaid commission has been submitted to the president on 06.10.2020.

The aforesaid commission has pointed out multiple offenses that were committed in violation under the Company Law, The Financial Cooperation Act, The Money Laundering Act, The Financial Information Reporting Act, The Legal Framework for the transfer of lands to foreigners and the Penal Code of Sri Lanka.

Further, the Committee had recommended to completely restructure the Department of Supervision of Non-Bank Financial Institutions of the Central Bank of Sri Lanka. 

Retired Supreme Court Judge K.T. Chitrasiri chaired the three-member committee.

Accordingly, the Cabinet of Ministers has granted approval for the proposal submitted by the president while drawing the attention to the aforementioned matters.

  • Forwarding the report to the Attorney General to take immediate legal actions to execute the recommendations of the aforesaid commission report on alleged finance and property irregularities of Edirisinghe Trust Investment Ltd.
  • Informing the Ministry of Finance to completely reform The Non-Bank Financial Institutions Supervision Department of Central Bank of Sri Lanka and to formulate a new institutional structure to regulate Finance Companies.
  • Submitting the report of the aforesaid commission and report the measures that are to be taken thereof to the parliament by the Minister of Justice.

– Ada Derena

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