Cabinet minister accuses Sri Lanka central bank of not prioritising customer well-being
ECONOMYNEXT – Sri Lanka’s Central Bank has formulated most of its monetary policies with the well-being of banks and finance companies in mind rather than that of their customers, Minister of Industries Wimal Weerawansa said.
The Central Bank’s role is to protect the customers and not to swoop in and assume control of the institutions when they fall, Weerawansa said at an event in Colombo yesterday.
When a finance company “runs away” with its depositors’ money, said the minister, the Central Bank steps in to shoulder the burden, leaving the depositors out in the cold with no justice in sight.
“The Central Bank’s role is to identify financial institutions that are about to fall and protect its customers before they fall,” he said.
Weerawansa further said entrepreneurs in Sri Lanka have historically helped keep the banking industry in Sri Lanka afloat by continue to engage in transactions with them, but the banks in turn have not looked out for those entrepreneurs in times of trouble.
“In order to develop the economy and the industries in our country there two main things that should change, one is the banks and the other energy,” he said.
The minister claimed that no country in the world achieved development by purchasing power at high costs for its industries and there is no country that keeps the spirit of entrepreneurship alive with the kind of policies adopted by Sri Lankan banks. (Colombo/Sep18/2020)