Cabinet this week gave approval to instruct the Finance Ministry to completely reform the Non-Bank Financial Institutions Supervision Department of Central Bank of Sri Lanka (CBSL) and to formulate a new institutional structure to regulate Finance Companies.
The Cabinet decision was taken following the submission of the Report of the Presidential Commission of Inquiry that investigated the wrongdoings, irregularities, and malpractices of the Edirisinghe Trust Investments Ltd.
The COI chaired by retired Supreme Court Judge Justice K.T. Chitrasiri pointed out the need to reform the Non-Banking Financial Institutions Supervision Department of the CBSL that supervises and regulates Finance Companies.
The Commission has found that there have been several offences under the Company Law, The Financial Cooperation Act, The Money Laundering Act, The Financial Information Reporting Act, the Legal Framework for the transfer of lands to foreigners as well as the Penal Code by ETI.
Cabinet gave approval to forward the report to the Attorney General to take immediate legal actions to execute its recommendations and submit the Report to Parliament.
The other members of the Commission are retired Solicitor General Suhada Gamlath and Senior Banker D.M. Gunasekara