Banking system stable, says Sri Lanka as $1.4-bn bonds near maturity date

Sri Lankan state-run banks are operating smoothly and the banking system is stable, the island nation’s central bank said on Thursday, in response to concerns raised by an opposition member of parliament.

Thursday’s remarks in parliament came against the backdrop of about $1.4-billion worth of Sri Lanka’s development bonds set to mature this year, more than two-thirds of them before March, with domestic banks holding about 89 per cent, central bank data shows.

Sri Lanka faces an economic crisis as it struggles to pay for essential imports of food and fuel after a 70 per cent drop in foreign exchange reserves since