The Ministry of Finance and the Central Bank of Sri Lanka yesterday assured the public and all other stakeholders that the banking system is stable.
"Operations of the State banks are being carried out smoothly, contrary to statements made otherwise,” the CBSL said in a statement in an apparent response to SJB MP Dr. Harsha de Silva alleging in Parliament yesterday that a State Bank had defaulted on swap arrangement.
“It is with extreme sadness and concern that we learn that a State bank has defaulted today. This has very serious implications to the entire banking industry,” Dr. de Silva told Parliament, adding that a State bank in the past did dollar swaps with negative premiums given the shortage.
(FT)