Move to reform state-owned banks

The Cabinet-of-Ministers on Monday (08) approved a proposal to reform the management of state-owned banks, a requirement under a programme with the International Monetary Fund (IMF), Cabinet spokesman Bandula Gunawardena said yesterday.

Addressing the media, Gunawardena said the reforms had been recommended by a committee comprising representatives from the IMF and the World Bank.

The reforms addressed weaknesses in the management and supervision of state-owned banks and their risk management, Gunawardena said.

The reforms of the banks were tied to a structural benchmark of the IMF programme and a World Bank development policy operation (budget support loans), the Minister said, adding these reforms had to be implemented as soon as possible. (RK)