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Mahilankadu farmers experience mechanised transplantation of paddy seedlings at the Commercial Bank programme

July 28, 2008 LBO) - Sri Lanka's finance ministry plans to bring a proposed new law to amalgamate six regional development banks (RDBs) to parliament early next month, a senior official says. The main stake holders of the banks last week gave the green light to the proposed act which is now being examined by the attorney general's department, says D M S Batagoda, head of the ministry’s public enterprise department.

"During the last week we had a successful discussion with banks employees and unions. We're now making the final preparations to present the new act to parliament before August 15."

Regional development banks in the outlying regions of Ruhunu, Rajarata, Sabaragamuwa, Kandurata, Uva and Wayamba are now run as autonomous banks with their own boards of directors.

They operate in all districts excluding the eastern Batticola and Trincomalee districts which until recently were troubled by the Tamil Tiger separatist insurgency.

The banks have more than 250 branches and service centers.

Under the proposed new structure, an executive director would be put in charge of each region and three banking professionals would be put on the main board.

The six bank

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