Banking Act to be revised

Cabinet gives nod to strengthen regulatory and supervisory framework

Banks are set to get a new look with Cabinet approval being given to revise the Banking Act.

Cabinet on Wednesday decided on a proposal made by the President as Minister of Finance and Planning to amend Banking Act No. 30 of 1988 for regulation and supervision of licensed commercial banks and specialised banks in the country.

Media Minister Keheliya Rambukwella told the media at the weekly Cabinet briefing that under the proposed new act, exemption granted for the subsidiaries of licensed banks to use the word ‘bank’ as part of its name had been removed and the provision pertaining to numbered accounts would also be repealed.

“The proposed amendments will streamline and strengthen the regulatory and supervisory framework for licensed banks to be in line with the best global standards and practices,” he said, adding that this was part of the vision outlined in the ‘Mahinda Chinthana,’ which outlined plans to create a financial hub in Sri Lanka.