To kick start the Financial Stability Fund, an initial nominal amount of Rs. 1 billion will be allocated by the Finance, Economic Stabilisation, and National Policies Ministry.

“The fund will be gradually built up through annual budgetary allocations, adhering to financial limitations,” Cabinet Spokesman and Minister Bandula Gunawardena said at the weekly post-Cabinet meeting media briefing yesterday. The Cabinet of Ministers on Monday approved the establishment of this fund

The Financial Stability Fund, is a key measure under Section 15 of the Banking (Special Provisions) Act No. 17 of 2023, is designed to ensure the smooth resolution of financial institutions in crisis, safeguarding financial stability in the country. Under Section 15(2) of the Act, the Financial Stability Fund will be managed independently, separate from the other assets held and regulated by the CBSL.