Govt. to set up expert committees to avoid financial crisis

• Mulls amendments in Banking (Special Provisions) Act

The Government has decided to appoint an expert committee to avoid any future financial crisis and minimise the fallout from an economic crisis.

The proposal to this effect submitted by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies was approved by the Cabinet of Ministers at its meeting on Tuesday.

Cabinet Co-Spokesman and Minister Bandula Gunawardena speaking to journalist’s post-Cabinet meeting said it was approved to set up the financial sector crisis management and financial sector technical committee.

“It is imperative to prevent the adverse impact on the financial sector due to fiscal and balance of payment (BoP) problems and to minimise the cost if such a crisis occurs. It is critical to have crisis management and timely decisions are essential given the situation faced by Sri Lanka at present,” he explained.

Gunawardena said it was also decided to include the necessary amendments in the Banking (Special Provisions) Act to coordinate the preparation and management of any financial sector crisis and their roles.

Cabinet Co-Spokesman said the committees will comprise officials and experts of the Finance Ministry and the Central Bank, adding the names have not been informed as yet.