CB warns of catastrophic consequences if banking sector collapses

The Central Bank warned that a collapse of the country’s banking sector would have catastrophic consequences.

Central Bank Governor Nandalal Weerasinghe said that it was vital to protect the banking sector.

“The CB Governor said it was vital to protect the banking sector as a collapse of the country’s banking sector would have catastrophic consequences,” the President’s Media Unit said.

The Governor had said this while addressing the media on the Domestic Debt Optimization (DDO).

He said that Friday (30) was declared a bank holiday to prevent any speculation, until Parliament approval for domestic debt restructuring is obtained.

The Central Bank Governor assured that the EPF funds already accumulated would not be touched and also guaranteed a minimum 9% interest for EPF. (Colombo Gazette)