COLOMBO. Nov 10: Srl Lanka's banking and financial sector is confident of overcoming the millennium bug and contingency plans have been put into place to meet any problems, the Central Bank Governor said today, reports Reuters.

The banking and financial sector is not expected to face difficulties in achieving Y2K compliance. However, all institutions. including those with lot. levels of computerisation, have contingency plans in place." AS Jayawardena told a media conference.

He said the Central Bank will ensure adequate liquidity and has Instructed all banks to Erint and send statements of alances of all customer accounts. debtors and creditors, confirming their status before the year-end.

"Liquidity is the main problem but since Srl Lanka is predominantly a cash based economy people are always holding cash,” Jayawardena said.

"We will ensure that there is adequate cash in circulation."

Ine contingency plans that will be adopted by the banks will include their own power generation and facilities to carry out manual transactions, officials said.

The World Bank in January approved a $29 million loan to help Srl Lanka ensure that key agencies and the financial sector can handle potential computer problems resulting from the year 2000 date change.