Former Deputy Leader of the United National Party, MP Ravi Karunanayake, has alleged that shortcomings within the Central Bank of Sri Lanka contributed to the financial crisis at National Development Bank Sri Lanka.
Speaking to the media, Karunanayake said the Central Bank had not effectively implemented the necessary mechanisms to regulate the country’s banking system, despite having been granted significant independence.
He questioned whether the Central Bank is adequately exercising its legal authority to supervise financial institutions, particularly under relevant provisions governing banking oversight.
The MP also pointed out that concerns over weaknesses within the Central Bank had been highlighted in a 2023 report by the International Monetary Fund.
He further claimed that responses to questions raised on the matter have been insufficient, prompting him to raise the issue in Parliament.
Karunanayake emphasised the need to examine whether the Banking Supervision Unit of the Central Bank is functioning effectively, noting that proper oversight is essential to prevent financial irregularities.
