Nov 29, 2016

Sri Lanka Central Bank to get more teeth to deal financial scams

Sri Lanka Monetary Law and Finance Acts are to be updated to give more regulatory powers to Central Bank to deal with irregularities of financial institutions and pyramid scams, Central Bank Governor Dr. Indrajit Coomaraswamy told journalists in Colombo today. At present the CB has no adequate regulatory powers to prosecute finical wrongdoers, he said.

The Non Banking Finance Division and the Investigation Division of the Central Bank is to be restructured to prevent the collapse of finance companies due to mismanagement, he disclosed.

Following the updating of Sri Lanka Monetary Law Act the Central Bank will be empowered to prosecute directors of Finance companies who failed to mange those none bank financial institutions in a sound financial footing, he added.