Govt. halts Samurdhi Bank takeover plan

Friday, 12 October 2018 00:00 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama – Our Lobby Correspondent

The Government yesterday informed Parliament that it would not continue with the plan allowing the Central Bank to take over the Samurdhi (Divineguma) Bank, as stated by Prime Minister Ranil Wickremesinghe addressing the May Day celebrations this year.

According to the Ministry of Social Empowerment, there are 1,074 Samurdhi Banks, 331 Samurdhi Regional Societies, and one Samurdhi General Society. As at 1 January, these Samurdhi Societies own assets exceeding Rs. 8.3 billion and as at 31 March, the Samurdhi Bank alone has Rs. 148.5 billion assets under its portfolio.

The Ministry of Social Empowerment also turned down the possibility of reversing the exemption, which has allowed Samurdhi Bank to be free from Central Bank control under the Divi Neguma Act No.1 of 2013.