Earlier this week, Sri Lanka announced an extended bank holiday to ensure five days to be available for the debt optimisation debates in the Parliament. The debt optimisation is being carried out while the island nation has been holding discussions with international creditors regarding the restructuring of external debt. The aim is to alleviate the country’s economic turmoil and pave the way for a more stable financial future.
Just days before this announcement, Central Bank Governor Dr Nandalal Weerasinghe reassured local depositors about the safety of their funds. He emphasized that the ongoing domestic debt restructuring would not impact the interests of depositors. This assurance aimed to instil confidence among the public amidst concerns about the country’s economic stability.
Furthermore, President Ranil Wickremesinghe had also given assurances regarding the impact of local debt restructuring on Sri Lanka’s banking system. He affirmed that the stability of the banking sector, including both state-owned and private banks under the supervision of the Central Bank, would remain unaffected by the restructuring process.