The Central Bank of Sri Lanka (CBSL) has instructed the state banks not to lend to the Ceylon Petroleum Corporation (CEYPETCO) beyond the prescribed credit limit, in a move to secure the stability of the state banks.
The above instructions have been made considering the non-payment of a significant amount of debts obtained in the recent past and the financial condition of the CEYPETCO.
The CBSL has also instructed the state banks to follow the same course of action with regard to other government bodies, which are incurring huge losses.
MIAP
