Central Bank has identified the need to strengthen the resolution framework and safety net mechanism for financial institutions and is in the process of drafting a comprehensive Resolution Framework to cover all financial institutions supervised by the Central Bank (CBSL).
In addition to initiatives that have been already taken to resolve distressed and high risk companies, the proposed Resolution Framework envisages several measures beyond mere cancellation of license.
While continuing the compensation payments to the insured depositors of Member Institutions of the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS), the CBSL have initiated developing a comprehensive data transfer system to obtain depositor-wise data to the Deposit Insurance Unit, and improving the effectiveness of compensation payment mechanism, according to CBSL’s roadmap 2020.
Also, the Central Bank will initiate necessary legal action against unauthorised deposit taking institutions and prohibited schemes, while taking measures to broaden public awareness on the consequences of engaging in unauthorised financial activities.
During 2019, the CBSL increasingly focused on implementing new technologies and continued to take measures to strengthen the payment and settlement infrastructure in order to develop efficient and stable payment and settlement systems capable of catering to the growing financial needs.