Sri Lanka's central bank is recruiting liquidators to handle troubled financial institutions amid rising inflation and currency volatility. The move follows the recent closure of Nation Lanka Finance PLC and comes as the country faces mounting economic pressures.
Sri Lanka's central bank has initiated a recruitment drive to establish a pre-qualified pool of liquidators tasked with winding up and dissolving stressed financial institutions under the Banking (Special Provisions) Act. The central bank invited expressions of interest from qualified professionals and firms, with submissions due by September 7. This development follows the regulator's decision last month to cancel the finance business license of Nation Lanka Finance PLC and commence its winding-up procedures.
The liquidator initiative comes amid broader economic turbulence affecting the nation. National inflation climbed to 7.2 percent in the 12 months to July 2026, marking a three-year high and breaching the central bank's 7 percent upper target limit. The surge was driven largely by non-food price increases of 9.2 percent, with energy costs playing a significant role. The rupee, which had depreciated severely earlier in the year, has shown signs of recovery, trading at 328.90-329.00 to the US dollar on Monday, compared to 329.40-329.50 on Friday.
Parallel developments highlight ongoing policy challenges. The government unveiled interest-free loan schemes for rice millers and announced an upcoming licensing round for offshore oil and gas exploration, aimed at addressing energy security and industrial growth. However, these initiatives face criticism. Opposition Leader Sajith Premadasa questioned the adequacy of government-guaranteed paddy prices, arguing that farmers earn insufficient monthly income despite production surplus. The government estimates that farmers producing Red Nadu rice at guaranteed prices of 120 rupees per kilogram earn approximately 16,666 rupees monthly—a figure Premadasa characterized as inadequate for family subsistence.
