Cabinet nod for probe into state bank irregularities over the past four years

The Cabinet of Ministers has given approval to a Cabinet paper submitted by Prime Minister Mahinda Rajapaksa on strengthening the national economy by improving the efficiency of the state sector banks and also for initiating a probe into irregularities that took place in state banks during the past four years.

Accordingly, a four-member committee has been appointed to probe into such irregularities and unproductive projects embarked on by the Bank of Ceylon, People’s Bank, National Savings Bank and the Regional Development Bank and their subsidiaries, from January 8, 2015.

The mandate of this committee us to provide recommendations for the following.

1. Identifying the bank officials and outside personnel responsible for any financial irregularities in above banks during the said period.

2. Taking regulatory and administrative action to avoid such actions in the future.

3. Streamlining the state banking sector to provide a more efficient service to the general public.

Former High court judge Sisira Ratnayake will head this committee while chartered accountant Susantha de Silva, retired Additional Auditor General W. Premananda will function as its members. A representative of the Ministry of Finance will be appointed as secretary of the committee.