Weak liquidity at Vanni banks adding to woes

Managers of Sri Lanka bank branches in Vanni fear of severe liquidity shortfall in their branches. They brought their concern on the cash crunch to the attention of the authorities at an essential services meeting held in Kilincochchi on Tuesday.

A report about the meeting in Thinakkural today, a Tamil daily published from Colombo says bank managers have been avoiding trips to Vavuniya to collect the needed cash for their branches in fear of the ‘deep penetration unit’ attacks inside Vanni along the way.

There was already restrictions in place on the amount of cash available for Vanni branches. The weak liquidity has forced the banks in Vanni to limit the amount of funds available for individuals at these branches.

People in Vanni are facing shortages of all essential items, a weak liquidity at the banks is adding to their woes.

The displacement has caused shortages for vegetables and fresh produce in places where numerous people have taken refuge for safety, according to Thinakkural.

Farmers have been fleeing several hamlets abandoning fields and crops.

Vegetables grown in areas where people have taken refuge for safety are insufficient to meet the needs of all internally displaced people, adds Tamil daily Thinakkural.

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