Sri Lanka, Oct. 21 -- Sri Lanka's Cabinet of Ministers has approved the introduction of a new credit risk assessment methodology for financial institutions, in line with the provisions of the Public Debt Management Act, Cabinet Spokesman Nalinda Jayatissa announced.

The proposed methodology will be used to evaluate credit risks associated with issuing government guarantees or providing sub-loans to state-owned enterprises under the Act, which was enacted by the previous government.

Jayatissa explained that the Act's definition of "Public Enterprises" does not cover the Central Bank or financial institutions that engage in lending or borrowing, either partially or fully, for their own business operations.

He said a separate assessment f...