Central Bank should take responsibility for collapse of financial institutions coming under its supervision - PM

Prime Minister Mahinda Rajapaksa said that the Central Bank of Sri Lanka (CBSL) must take responsibility for the collapse of a financial insistution under its supervision. 

He stated this while taking part in a discussion on the current situation surrounding The Finance Company PLC at Temple Trees, the PM's Office said. 

The Premier also pointed out that the continued collapse of financial institutions coming under the CBSL as well as irregularities within them has painted the Government in a negative light. Moreover, it erodes public trust in State financial institutions. 

Mr Rajapaksa added that new laws were needed to take action regarding such financial frauds. 

Deputy CBSL Governor H. A. Karunaratne stated that steps will be taken 97% of depositors of The Finance Company will be paid back starting from next Monday while payments for the other 3% will be paid back at a later date.