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. Today, the entire banking sector in sri lanka offers the automated banking systems with atms for customers, for faster, and after-hour services the working hours of the sri lankan banking sector have now changed from 8 hour, 5 days a week system to a 24/7 service.
In the context of a volatile and challenging global economy we are well aware that banking industry in sri lanka cannot be fully insulated from risks arising from commodity prices, reduced purchasing power from western economies and the contagion impacts of a global downturn.
Sri lankan banks to work together and coordinate efforts to drive changes in banking practices identified as necessary for the sector to contribute positively to the sustainable development of sri lanka. Sri lanka’s commercial banking sector consists of 13 local banks and 12 foreign banks which account for lkr 6,900bn (usd 48bn) asset base from the overall banking sector, private sector domestic commercial banks hold 46% of the market share and two of the giant state banks hold 44%.
The bank has also aligned its strategy with national development, given it is a wholly owned state bank, with the government of sri lanka as one of its stakeholders, and therefore has a responsibility to ensure it contributes proactively to the country’s development. A review of ‘banking and business in sri lanka’ by vs nadarajah by k godage i write this review in the hope of providing the reader an enticing glimpse into an exciting subject – the flow of our progress from a plantation centric export economy to the diversified open market economy that we have today. Banking sector stable in sri lanka, but profitability weak march 31st 2015 | asia | banking sri lanka's government has a high level of control over the island's banking sector, with two state-owned banks accounting for 35% of total assets.