The Central Bank of Sri Lanka (CBSL) has issued a clarification on the directive that was issued pertaining to loans being provided to the Ceylon Petroleum Corporation (CPC).
Governor of the CBSL Ajith Nivard Cabraal said the bank has only asked the state banks to adhere to the Single Borrower Limit that has been set for the CPC.
He further said the CBSL has not banned loans to the CPC as reported by some local media.
Earlier, CBSL sources revealed that Cabraal had issued a special circular prohibiting banks from providing further loans to the CPC.
The sources said the CBSL Governor had warned the Government that the state’s banking system will not be able to operate in the future and may collapse due to continuously providing loans to the CPC.
According to the sources, Cabraal has also informed the Government that he will not take responsibility if the state’s banking system collapses due to this reason. (NewsWire)