Central Bank Governor W.D. Lakshman vowed to take legal action against individuals and groups spreading false or misleading information with intentions of creating unjustified disruptions in the bank and non-bank financial sectors.

"The COVID-19 pandemic and the resultant slowdown in the domestic as well as the global economy have created a challenging environment for the operations, not only of the financial sector but also for all types of economic activities in the country. The performance of the real economy and the financial sector are closely intertwined. The future performance of the financial sector depends on the survival and growth of domestic businesses. The government and the Central Bank have therefore requested the financial sector, particularly the banking sector on the back of its inbuilt balance sheet strength, to continue to support the economy in various ways, while the Central Bank is providing the necessary liquidity and regulatory support to the financial sector to meet these challenges. Even prior to the onset of the outbreak, going back to 2018 and 2019, there was a rise in non-performing loans in both banks and non-bank financial institutions, particularly due to the sluggish growth in private sector credit and overall economic activity," he said in a statement.

"The banking sector remains strong with total capital adequacy ratio above 16 percent, net stable funding ratio above 130 percent, liquidity coverage ratio above 175 percent and statutory liquid asset ratio above 32 percent,” the statement also added.

“It also must be noted that the Central Bank will not hesitate to take legal action against individuals and groups spreading false or misleading information with intentions of creating unjustified disruptions in the bank and non-bank financial sectors,”