The State banking system and their affiliated bodies have to operate formally and effectively to overcome the challenges encountered by the Sri Lankan economy amidst COVID-19 pandemic.

However, it is apparent that the State banks have operated away from the fundamental objectives formulated at the initiation of those State banks and have operated violating provisions and procedures.

Hence, the cabinet of ministers has approved a proposal by Prime Minister Mahinda Rajapaksa to appoint a committee of experts to formalize and drive efficiency in state banks.

The Committee is to be chaired by former High Court Judge Sisira Rathnayake to recommend the legal and administrative measures to be taken if fundamental objectives have been violated.