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President proposes to allocate 20-pct shareholding in BOC & People’s Bank to depositors & staff

In order to meet recapitalization requirement borne out due to increase in interest rates, rising NPLs, loan settlement issues faced by businesses due to economic crisis, and liquidity issues faced by the state banks, it is proposed to allow 20 percent of shareholding of the Bank of Ceylon and People’s Bank by their depositors and staff.

Delivering the interim budget speech, President Ranil Wickremesinghe told parliament that the government’s ability to provide additional capital at this stage to the state banks is very limited given the lack of fiscal space.

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