CB probes NSB forex deal

The Central Bank of Sri Lanka (CBSL) is conducting an inquiry into irregularities by the National Savings Bank (NSB) in granting foreign currency loans upto Rs 450 million without being approved by the Monetary Board.

A senior official of the Central Bank told The Sunday Times FT that they have found that the NSB has failed to obtain the approval to grant these loans during the period July to September this year in terms of the Banking and the Exchange Control Act. The NSB has been asked to explain why.

He pointed out that this irregularity was detected in the statutory returns furnished by the NSB but declined to comment on whether NSB would be penalised or not.

The Central Bank official declined to comment on whether the NSB was liable to any punishment or penalty.He noted that loans should be given only to exporters whose bona fides are determined in terms of his export performance, etc.