The banking system would not be burdened any further as it already contributes to the Treasury and economy through taxes of over 50%, Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe stated.
Dr. Nandalal Weerasinghe assured that the 57 million depositors would be protected despite a domestic debt restructuring.
He further stated that the exchange of bonds pertaining to superannuation funds in line with the domestic debt restructuring plan will be completed within the month of July.
The CBSL Governor also assured that the Employees Provident Fund (EPF) funds already accumulated would not be touched and also guaranteed a minimum of 09% interest for EPF.
At the moment there are two options for the EPF which has invested 3.5 trillion rupees in Treasury bonds, he said.
The CBSL Governor outlined that firstly, accept the government’s domestic debt restructuring process, go for step-down bonds, and agree to change the bonds from a higher rate to new series with a 9% yield from 2025 or Secondly, EPF will have to pay 30% corporate tax from the current 14%.
Dr. Weerasinghe also assured that people can withdraw their EPF funds as per current laws and further assured liquidity to pay the funds for the contributors.
The CBSL Chief added that it was vital to protect the banking sector as a collapse of the country’s banking sector would have catastrophic consequences.
Dr. Nandalal Weerasinghe made the clarifications during a meeting with the heads of media institutions held today (29).
His remarks come after the Cabinet of Ministers granted approval for Sri Lanka’s domestic debt restructuring programme during a special Cabinet meeting held yesterday.
Responding to a question posed by a journalist, the CBSL Governor said Friday (June 30) was declared a bank holiday to prevent any speculation until Parliament approval was obtained for the domestic debt restructuring. (NewsWire)
