The long bank holiday from 29 June to 03 July obtained by declaring 30 June as a special bank holiday is to gain time for the domestic debt restructuring process.
“Local depositors are assured of the safety of their deposits & that interests will not be affected” Central Bank Governor Dr. Nandalal Weerasinghe said.
Friday, June 30 has been declared a special bank holiday via a Gazette issued by the Prime Minister’s Office which makes for a five-day bank holiday for the first time in Sri Lanka.
According to media reports, analysts believe the government, planning to announce a Domestic Debt Restructuring (DDR) on Wednesday, wanted a longer weekend to provide a suitable buffer for any potential market reactions to significant financial announcements.
Anticipating the announcement on DDR, the government expects that this cooling-off period of five days would minimise the potential frenzy in the sector, they said.
The five-day bank holiday covers the Hajj festival (Thursday, June 29), a special bank holiday (Friday, June 30), Saturday (July 1), Sunday (July 2), and the Esala Poya (Monday, July 3). (NewsWire)