Several public and private entities to transfer their accounts from state banks

Several heads of state institutions including ministries, corporations and statutory boards and leading private sector companies have informed the Finance Ministry that they would immediately transfer their accounts and fixed deposits to licensed private commercial banks from state owned banks, ministry sources disclosed.   

These heads of public and private sector institutions have taken this decision following the state banks work to rule, and protest campaigns and threats of strikes which will badly affect their financial transactions amidst the strikes demanding the withdrawal of the personnel income tax hike.

Some leading private sector companies are to take board decisions on transferring their accounts being maintained at two state-owned banks as it had to face daily cash flow difficulties, depositing money and debt servicing during the one day token strike in some outstation and Colombo suburb banks on Wednesday.    

Government institutions have been permitted to open accounts in commercial banks if the issuance of letters of credit for the import of essential commodities, including medicine, is affected as a result of the strike action, a senior ministry official said. 

This decision was taken at a special Cabinet meeting chaired by President Ranil Wickremesinghe on Monday, he said adding that it was decided to allow ministries, departments, and statutory boards to open accounts in commercial banks with the approval of the Finance Ministry. (Bandula)