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THE INSTITUTE OF CHARTERED PROFESSIONAL MANAGERS OF SRI LANKA
JANUARY 2021
is still very much uncertain as no permanent operational guidelines have changed. Also
solution for the pandemic in sight. This the sector has to deploy a substantial
means that main sectors of our economy will amount of manpower into constant servicing,
take a longer time to recover and to resume and maintaining of various relief schemes,
operations in their optimum capacity. The guiding customers to obtain the suitable
drop in the Gross Domestic Production and options for them and all affiliated work
the additional pressure on the sector due related to the relief schemes. The sector
to additional costs incurred and the halting will have to operate in a very different
of recovery efforts will negatively affect the environment and everything from credit
balance sheets and two major ratios that evaluations, risk appetites and to accounting
dictate the health of the banking sector, standards will have to undergo adjustments
namely capital adequacy and liquid asset in the medium term.
ratios. Few sectors will need extra support to even
The sector will have to keep adjusting its re-start their operations and the onus would
operations, guidelines and processes to suit be on the regulators and the sector to
the prevailing conditions. The parameters cater to these special segments through a
that apply to determine the credit quality, comprehensive post moratorium package.
classification of customers, some of the
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