Apr.06 (LBO) — Sri Lanka is going ahead with reviving Pramuka Bank and also setting up an institutional framework to recover debts of Pramuka and other state banks, Treasury Secretary P B Jayasundera said.
-Jayantha Kovilagodage: email@example.comÂ
Pramuka Bank will be revived as the ‘Sri Lanka Savings Bank’ with the necessary legislation due to go to parliament by May.
“Depositors of Pramuka would be taken as the first depositors of the new bank,” Jayasundera said.
“The deposits will be protected by the government and we have set things in motion for this to happen in May.”
Legislation will also be presented to set up a framework to take over chronic bad debts of state banks at the same time.
“We are bringing a new bill to parliament considering what happened to Pramuka and at the time of setting up the new bank, we are setting up an institutional framework to recover hardcore bad debts of People’s Bank and Bank of Ceylon also,” Jayasundera said.
“This will strengthen the financial sector.”
A special purpose vehicle, usually called an Asset Management Company is usually set up in countries to take over bad loans of dist