Here We Go Again

Ishara S. Kodikara | AFP | Getty Images Sri Lanka Prime Minister Ranil Wickremesinghe, center, speaks to supporters at the prime minister's official residence in Colombo on December 16, 2018, after he was reappointed as prime minister by Sri Lanka's president, the same man who fired him from the job nearly two months ago.

People’s Bank is to receive a Rs. 8 billion capital injection over the next four years as part of a restructuring program that will keep full ownership with the State. People’s Bank is to receive a Rs. 8 billion capital injection over the next four years as part of a restructuring program that will keep full ownership with the State. This is the third time the State banking giant plagued by huge non-performing political loans is receiving a capital injection.

Rs. 2 billion in equity will be made available to the bank this year that has a Rs. 10 billion capital shortfall in its balance sheet.

People’s Bank has a number of militant unions that once prevented senior management from entering the bank. The unions say they are worried the restructuring will lead to privatisation.

The bank was re-capitalized twice in 1993 and 1996 when up to Rs. 17 billion rupees worth of reconstruction bonds were issues.

The latest attempt is different because it is a cash injection and supported by a program loan from the Asian Development Bank (ADB).

ADB will lend US$ 65 million to the government for a private sector development program most of which is in support