Financial News from Sri Lanka: The banking sector in Sri Lanka must begin to prepare for the anticipated transformation of the current banking sector environment as the new Banking Act comes into force with the regulator acquiring the power to impose fines on errant banks.
“We are in the process of reviewing the current banking act and there are a number of amendments that will be implemented to improve the banking act and one of those amendments is to allow the statutory authority that is the manager of banking supervision to impose fines,” Central Bank Governor Dr. Indrajit Coomaraswamy told reporters on Friday (11 October).
“We’re not able to impose a fine right now. In newspapers around the world, you’d have read that authorities are enforcing billions of dollars in penalties on some of the world’s largest banks. We can’t do this now. In some respects, we can limit their company. We may limit the position of members of the board, etc. Yet we can’t impose fines so that’s what’s going to be introduced, “said Governor.” So the World Bank helps us save the banking act. So with that I think all these sanctions would be introduced.”added CBSL H.A. Karunaratne’s Deputy Governor.