Private banks : New Directive from Govt for state institutions

March 2, 2023 at 1:22 PM

The government has issued a new directive pertaining to the issuance of Letters of Credit (LoC) due to the strike action launched by trade unions of various essential services, including the state banking sector.

Cabinet Co Spokesman Minister Bandula Gunawardena told the media yesterday, that government institutions have been permitted to open accounts in commercial banks if the issuance of Letters of Credit for the import of essential commodities, including medicine, is affected as a result of the strike action.

Stating that the decision was taken at a special Cabinet meeting chaired by President Ranil Wickremesinghe on Monday (27), the minister said it was decided to allow Ministries, Departments, and statutory boards to open accounts in commercial banks with the approval of Finance Ministry.

Minister Gunawardena further said that the measure has been taken after considering the risk of disruption of all financial activities in the event transactions and opening of Letters of Credit are not possible through State banks due to the strike. (NewsWire)