An asset quality review of seven commercial banks has been conducted for the purpose of domestic debt restructuring on the recommendations of the International Monetary Fund (IMF), ‘Irida Deshaya’ reported.
Two external audit firms have carried out the survey to determine the banks’ active and inactive debts, bad-debts and the extent possible for restructuring.
A preliminary report has been compiled, while the rest of the commercial banks in the country will come under asset quality reviews in phases.
Several international agencies including the IMF, World Bank and Asian Development Bank are asked for the initiative.
This is being done amid strong criticism by both the ruling and opposition MPs.
Former finance minister Ravi Karunanayake has warned of a serious economic crisis if domestic debt is restructured at this moment.