During September 2014, the Monetary Board of the Central Bank of Sri Lanka approved in-principle another right (8) consolidation proposals submitted by banks and Non-Bank Financial Institutions (NBFIs) thus bringing the total number of proposals approved so far to 37.

At the same time, consolidation plans of another four banks and four Non-Bank Financial Institutions are also being finalized and are due to be announced in the near future.

The work relating to the mergers/acquisitions that have already commenced continued to progress with the respective banks and Non-Bank Financial Institutions working towards the timelines set at the beginning of the year.

The Central Bank held a further round of discussions with selected Non-Bank Financial Institutions with a view to resolving pending issues on their respective consolidation processes and at these meetings necessary guidance was provided for the facilitation of the implementation of the respective merger plans.

In the meantime, the Central Bank’s Internal Committees also reviewed the current regulatory framework for banks and Non-Bank Financial Institutions with a view to further strengthening financial system stability in the post-consolidation period.