COLOMBO (NewsRadio); The Cabinet of Ministers has granted approval to state institutions to open accounts in commercial banks if the issuance of Letters of Credit for the import of essential commodities including medicine is impeded due to the trade union action.
The decision has been taken at a special Cabinet meeting held under the auspices of President Ranil Wickremesinghe.
Cabinet Spokesman Minister Bandula Gunawardena said the Cabinet granted approval to Ministries, Departments and Statutory Boards to open accounts in commercial banks after obtaining permission from the Ministry of Finance if need arises.
During the Cabinet meeting, Ministers highlighted that the risk of disruption of financial activities can have a major bearing on the lives of the public since essential items such as medicine, fuel and gas cannot be procured without Letters of Credit.
Accordingly, considering the matters highlighted, the Cabinet of Ministers had granted approval to state institutions to open and maintain accounts in commercial banks in case of an emergency.
