Finance Ministry to undertake new institutional structure for CB’s NBFI Dept.
The Non-Bank Financial Institution (NBFI) Department of the Central Bank is set to undergo an institutional overhaul as per the recommendations given by the Presidential Commission of Inquiry (PCoI) into Edirisinghe Trust Investments (ETI), a top official said yesterday.
The report of the PCoI was tabled before Cabinet this week and its members decided to implement the recommendations outlined in the document. Accordingly the Finance Ministry has been informed that the NBFI Supervision Department of the Central Bank (CB) will need a complete overhaul including a new institutional structure to regulate finance companies that will be drawn up by the line Ministry.
The Cabinet also forwarded the (PCoI) report to the Attorney General, directing him to take immediate legal action to execute the recommendations of the report on alleged financial and property irregularities of Edirisinghe Trust Investment Ltd.
“This ETI issue is a complex one and will need to be resolved based on the recommendation given by the PCoI which investigated the matter,” Cabinet Spokesman Keheliya Rambukwella said yesterday, pointing out that the end goal is to provide relief for those who have invested in the now troubled financial institute.
The report by the PCoI is to be tabled in Parliament by Justice Minister Ali Sabry, Rambukwella said.
President Gotabaya Rajapaksa appointed a Presidential Commission, chaired by retired Supreme Court Judge K.T. Chithasiri to investigate the troubled institution on 9 January this year. The report prepared by the PCoI was handed over to the President last week.
According to the Government, PCoI has found that there have been several offenses under the Companies Law, the Financial Cooperation Act, the Money Laundering Act, the Financial Information Reporting Act and the Legal Framework for the transfer of lands to foreigners, as well as the penal code.
“The Presidential Commission has pointed out the need to reform the Non-Banking Financial Institutions Supervision Department of the Central Bank of Sri Lanka that supervises and regulates finance companies,” Rambukwella added.
(FT)