Sri Lanka’s banking sector maintains its vibrancy even amidst economic slowdown following Easter terror attacks.
The banking sector in Sri Lanka constitutes 33 banks and maintains assets totaling LKR 11.8 trillion as at end 2018.
The financial system is dominated by the banking sector accounting for nearly 60 per cent of the total assets of the financial system.
At present, the banking sector is mainly funded by deposits accounting for more than 70 per cent of the total assets, whilst shareholders contribute to approximately 8.7 per cent of total assets.
Disagreeing with negative reporting on the bank performances, Prime Minister Ranil Wickremesinghe argued that the Sri Lankan economy has expanded over the last four years, with growth of total public savings increasing by over 80% as reflected in bank holdings.
Speaking at the 80th anniversary of the Bank of Ceylon (BOC), he emphasised that the current economic situation, when compared to that of 2015, was vastly improved.
Presently, four banks of Sri Lanka are ranked among the top 1000 banks in the world, according to the Banker Magazine, UK. Considering the important role played by the banking sector in the financial system and the economy of the country.
The Central Bank continues to introduce prudential policy measures and regulations based on internationally adopted regulations and best practices, to further strengthen the stability and sustainability of the banking sector, as any stress in the banking sector can adversely impact the economy.