Thursday, 24th June 2021

People’s Bank privatization rumor rejected by Finance Ministry, Blames opposition

Colombo, Sep 03 (BAN/ AD): Finance Ministry has blamed opposition for People’s Bank privatization rumor. It has rejected the rumor. Government has stressed the proposed amendments to the People’s Bank Act will not aim to privatize People’s Bank.

As per the section 13 of People’s Bank Act 29 of 1961, the ultimate ownership of People’s Bank vests with the government of Sri Lanka. Government emphasizes that section 13 has not been included in the proposed amendment bill let alone amend it. Proposed amendments only seek to amend section 12, 20, 21 and 43 of People’s Bank Act.

The government affirms that after the People’s Bank Act has been amended, there is no opportunity whatsoever to convert issued debentures to share capital. The process of People’s Bank Act was started in 2013. Thus rumors that People’s Bank Act amendment Bill will lead to privatization the Bank, are baseless and politically motivated.

 

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