The Central Bank on Friday said it would expedite measures to realise the required consolidation within the financial sector comprising banks and non-bank financial institutions (NBFIs).  

AS per the Short Term Road Map announced, the CBSL will fine tune the master plan for the consolidation of the financial sector to overcome the longstanding issues in the sector and to support the growth of the economy.

Other measures are: 

Encourage mergers and acquisitions as well as new capital infusions to the sector. Aim at 25 strong NBFIs to comply with the medium-term targets of the master plan. Ensure that all Licenced Finance Companies (LFCs) are listed at the Colombo Stock Exchange before 30 September 2022.

Facilitate the consolidation program by providing expeditious regulatory approvals. NBFIs whose finance business license has been suspended or cancelled, are being reviewed to assess the way forward. If such NBFI is considered possible to be revived, develop plans to enable infusion of capital investment for revival, subject to a feasible business plan. Make necessary interventions in court proceedings based on the respective plans of action.

Negotiate with potential investors for those LFCs that had their licenses suspended. Encourage LFCs and Specialised Leasing Companies (SLCs) to raise capital via equity as well as listed debt to improve resilience of the sector.

CB takes new measures to further strengthen banking sector resilience