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Sri Lanka’s rural banking sector operates without regulatory methodologies

Sri Lanka’s rural banking and non banking sector at village level are operating without regulatory methodologies there by leading to mal practices , government audit inspection revealed.

Non-implementation of Regulatory Methodologies were evident and In terms of the Cabinet Decision dated 26 April 2013, it had been decided that a Special Regulatory Unit should be established for this sector .

This Unit is entrusted with the task of regulating f Cooperative Rural Banks, Rural Bank Societies, SANASA Societies, SANASA Sangams and other financial cooperative societies.

Accordingly, a sum of Rs.20.99 million had been spent by the Department of Co-operative Development from the year 2013 to the year 2018 for affairs of the Regulatory Unit established.

Even though a period of 06 years had elapsed after the commencement of the said Unit, the Department had not implemented a proper procedure regarding those regulatory activities.

Further, the Department had not implemented the regulatory methodology on behalf of other financial services societies and SANASA Societies except for the Rural Bank Sector.

(LI)

 

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