The Sri Lanka Banks' Association (SLBA) has expressed its appreciation for the assurances provided by Dr. Nandalal Weerasinghe, the Governor of the Central Bank of Sri Lanka (CBSL), regarding the anticipated government announcement on Domestic Debt Optimisation (DDO) or Domestic Debt Restructuring (DDR). The SLBA welcomed the Governor's commitment to maintaining financial sector stability and his clarifications on the related process.

The SLBA acknowledged the significance of Dr. Weerasinghe's public announcement, which included a clear assurance that the upcoming DDO or DDR would not have any adverse effects on financial system stability or depositors in banks and non-bank financial institutions.

Furthermore, the Central Bank Governor emphasized that the recent five-day holiday for the banking sector was intended to provide sufficient time for discussions on the DDO/DDR strategy within the government. It also allowed for reflection by the public and market participants, according to the SLBA's statement.

The Association also highlighted that the Governor emphasized the importance of following the proper approval process for the DDO/DDR strategy, including obtaining approval from the Cabinet of Ministers, the Committee of Public Finance, and the Parliament through a debate. The CBSL and the Ministry of Finance have been actively involved in these discussions.

Addressing concerns about banking services during the holiday period, the SLBA noted that the Governor had assured that customers would continue to have access to banking services through ATMs, online platforms, and other digital channels.