strengthening governance of all State Owned Banks (SOBs) – licenced commercial and specialised banks and strengthening the risk management architecture of SOBs.

In order to protect retail investors from potential losses, the Government will not seek to sell shares to retail investors in either of the banks (Bank of Ceylon/People’s Bank) until the bank has been profitable and in full compliance with all CBSL prudential ratios for not less than two consecutive calendar years following the date of this Cabinet Decision.

In any event, the Government would only consider selling a minority stake in selected State banks, whilst the Government retains the majority share ownership, as articulated in the 2024 budget speech (paragraph 70