Commercial banks at risk amid deficit of Rs. 455 billion

The commercial banks in Sri Lanka are suffering from a deficit of Rs. 455 billion, revealed former deputy Governor of the Central Bank of Sri Lanka W.A. Wijewardena.

In a tweet, the ex CBSL deputy governor pointed out that the crisis is due to the interest rates and exchange rates being artificially controlled.

Wijewardena urged that the CBSL should act immediately in providing funds to the banking systems without letting the commercial banks collapse.

MIAP

SL is to enter 2022 with double whammy:no forex & rupee liquidity in banks;net rupee deficit in banks have increased to Rs455bn requiring @CBSL to meet it daily under its standing lending facility at 6%;CB must fund now both Govt & com banks to keep system going

— W A Wijewardena (@waw1949) December 25, 2021