The Sri Lankan government, as reported by Ishara Gamage in Ceylon Today, is poised to implement substantial changes to the governing laws of major State banks, such as Bank of Ceylon, People’s Bank, National Savings Bank, and the State Mortgage and Investment Bank.
The proposed amendments include the establishment of separate public liability companies for Bank of Ceylon and People’s Bank, entailing a 20% divestment of State stakes to chosen depositors and employees. This move is in line with IMF directives, aiming to enhance transparency, accountability, and commercial viability in State-owned banks. Moreover, People’s Bank and Bank of Ceylon plan to amend their governing Acts, transitioning into public limited companies to expand shareholder bases and capital. Additionally, the Cabinet has given approval for the division of Sri Lanka Insurance Corporation’s life and general insurance businesses into two entities, with full privatisation anticipated by mid-2024.