Annual Report 2008 - Ministry of Finance and Planning

7. Development Finance
283
Box 7.2
GTZ - Woman processing cashew using traditional methods.
GTZ funded PROMIS project support women in Mannar
district in cashew production with technical and business
development training. These women are now organized in
Women’s Rural Development Societies (WRDS) are facing
difficulties in pursuing cashew production due to insufficient
training and lack of material maintenance. Further they
were not investing in buying raw cashew owing to not
being certain of the income which could be generated.
They lacked marketing knowledge and the capacity to
assess the feasibility of their enterprises. PROMIS engages
these women in a process where they are strengthened in
technical skills, entrepreneurship, social empowerment,
marketing and business development and linked with
private and government sector service providers as well as
other stakeholders in the industry.
Financial Markets Programme for Private Sector Development
Funded by Asian Development Bank
billion, to increase the portfolio to Rs. 15.9 billion from
what was
The Financial Markets Programme for Private Sector
Development Programme has been setup in Sri Lanka in
2005 with the financial assistance of the Asian Development
Bank to facilitate private sector development by
strengthening the financial markets including restructuring
and recapitalization of the People’s Bank.
The following activities were completed in terms of the
second tranche conditions of this programme in 2008.
Rs. 12.9 billion in 2007. This was further augmented
with the debenture issue of Rs.2.5 billion, together with
ploughed back earnings enabled the Bank to meet
the much discussed Capital Adequacy Ratio to 10+
percent under BASEL II, which requires a substantial
increase in risk weighted assets due to the inclusion
of operational risk. It is also expected that the capital
injection of Rs.1.5 billion made in December 2008 also
will make significant progress in 2009.
• Rs. 2 billion of capital injection was made to the
People’s Bank by the Government of Sri Lanka to meet
the minimum risk weighted capital requirement of 10
percent. The profit and the Capital Adequacy Ratio of
this Bank have been increased since 2005 due to the
Capital injections made by the Government of Sri Lanka
in respective years. According to the annual report 2008
of the People’s Bank, it is apparent that the bank has
recorded a profit before tax of 5.6 billion in 2008 a growth
of 13.2 percent over 2007. The bank gained a boost in to
their capital reserves with the Government injecting 1.5
• The Cabinet approval was obtained by the Ministry of
Finance and Planning to instruct the Legal Draftsman
to draft the following Acts –
• Secured Transaction Act.
• Securitization Act
• Securities and Exchange Commission Act
• Consequential 11 Acts relevant to the Securitization
Act.
• Draft of the Secured Transaction Act was prepared
by the Credit Information Bureau which has been
Ministry of Finance and Planning Sri Lanka
Annual Report 2008