Oct 13, Colombo: The Central Bank of Sri Lanka will take steps to encourage mergers and consolidations within the banking and non-banking financial institutions (NBFI) sectors.
Central Bank Governor Ajith Nivard Cabral has said that the move would be encouraged over the next year.
Cabral has told a local English weekly that currently, about 90 percent of the assets, deposits and advances in the NBFI sector are held by 20 NBFIs.
He has explained that the other 38 companies account for the balance 10 percent.
"Hence, there is a tailor-made opportunity to encourage mergers and acquisitions," Cabral has said.
Meanwhile, the Central Bank is making an effort to set more stringent standards for finance companies and the Monetary Board issued four new directives to tighten controls.