COLOMBO, Feb. 2 (Xinhua) -- Sri Lanka is to borrow 150 million U.S. dollars from the World Bank to finance the Financial Sector Safety Net Strengthening Project, the Finance Ministry said in a press statement on Friday.
The ministry said the project will especially focus on the Sri Lanka Deposit Insurance Scheme (SLDIS), which is managed by the central bank.
The project also aims to strengthen the financial and institutional capacity of the SLDIS in line with international best practices for effective deposit insurance schemes, the statement said.
The ministry said it will also increase reserves of the SLDIS, so it can meet payout and bank resolution obligations, safeguard confidence of the public in the financial system, and improve capacity of the SLDIS to perform its legally mandated functions by reducing the time required for reimbursement and by increasing public awareness about the scheme. ■
