From The Report: Sri Lanka 2019
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Sri Lanka’s banks are currently experiencing considerable change. Regulatory matters are a prominent concern, alongside the ups and downs of loan growth and economic policy. A careful balancing act is being performed as a result, with those able to tread the narrow path recording healthy bottom lines and continued service expansion in 2018. The year ahead will likely see this trend continue. There is an expectation that an election year may see some fiscal loosening overall, to the benefit of credit growth – particularly in the consumer segment. Meanwhile, meeting the new regulatory standards accompanying the rollout of Basel III and International Financial Reporting Standard 9 requires some significant changes in the way lenders do business. Following a global trend, digitalisation and financial technology are changing the industry, and the next few years look set to be transformative. This chapter contains an interview with Indrajit Coomaraswamy, Governor, Central Bank of Sri Lanka.