Sri Lanka approves proposal to set up financial stability fund

Colombo: Sri Lanka cabinet approved a proposal to establish a financial stability fund with an initial allocation of one billion Sri Lankan rupees (3.3 million U.S. dollars), the government's information department said on Tuesday. President Ranil Wickremesinghe presented the proposal to the cabinet seeking approval to establish the fund, the department said. The Central Bank of Sri Lanka has recognized that strengthening the bank resolution framework should be given urgent priority under the crisis management framework of the financial institutes regulated by it, the department said. A financial stability fund should be established to ensure the fulfillment of resolution objectives under the Banking (special provisions) Act and to implement the resolution procedures provided by it effectively, according to the department. Sri Lanka is expected to obtain a loan amount of 200 million U.S. dollars this year under the stability and reform program in the financial sector, which is funded by the Asian Developm ent Bank. Source: The Namibia News Agency