Banking
From The Report: Sri Lanka 2017
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With strong asset growth, reliable profitability and solid capital adequacy, the Sri Lankan banking sector stands in sound health these days as it looks forward to a period of continued economic stability. Like other sectors, the industry is moving in the direction of greater capital and technological requirements, and continues to undergo a period of consolidation – particularly among its smaller players. In addition, new legislation on microfinance holds promise in seeing banking services spread further beyond the Western Province, with major benefits for companies and individuals outside of the country’s metropolitan centre.

This chapter contains interviews with Indrajith Coomaraswamy, Governor, Central Bank of Sri Lanka; and Jim McCabe, CEO, Standard Chartered Sri Lanka.

Articles from this Chapter

Overview

Big picture: The sector is expected to see continued growth and profitability, although much will depend on recent reforms
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With strong asset growth, reliable profitability and solid capital adequacy, the Sri Lankan banking sector stands in sound health these days as it looks forward to a period of continued economic stability. Like other sectors, the industry is moving in the direction of greater capital and technological requirements, and continues to undergo a period of consolidation – particularly among its smaller players. In addition, new legislation on microfinance holds promise in seeing banking services…

Interview

Macro management: Indrajith Coomaraswamy, Governor, Central Bank of Sri Lanka, on overseeing a diverse range of financial institutions
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Interview: Indrajith Coomaraswamy How resilient is the domestic economy to external shocks like the decline in commodity prices? INDRAJITH COOMARASWAMY: At present, sluggish global growth has resulted in dampened external sector demand, which, together with domestic developments, has contributed to the persistence of the external current account deficit. The prevalence of low commodity prices is another factor that has impacted many emerging and developing market economies, including Sri Lanka.…

Analysis

A developing segment: Microfinance institutions receive more regulation and options to expand their services for underserved households
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Although Sri Lanka has numerous banks, a large part of the population – particularly outside the major urban areas – has looked to other types of financial intermediaries to meet its needs, or has remained outside of the financial system altogether. In addition, years of conflict denied large numbers of citizens contact with normal banking practices, particularly in the north and north-west regions – the areas most badly affected by the violence and from where large populations of internally…

Interview

The way ahead: Jim McCabe, CEO, Standard Chartered Sri Lanka, on growth prospects in the banking sector and the country as a whole
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Interview: Jim McCabe What is your view on Sri Lanka’s growth momentum and development in the banking sector? JIM MCCABE: The progress Sri Lanka is making on many fronts is very encouraging. The government’s timely and necessary infrastructure plan will require many different sources of financing, and the banking sector will have the opportunity to formulate innovative and constructive forms of financing. Standard Chartered will continue to partner development and enterprise, helping to bring…