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New trends reshaping Sri Lanka’s financial service industry today
Sri Lanka Central Bank Governor Dr Indrajit Coomaraswamy shares an encouraging account on the recent financial services improvements in his country. He identified fintechs along with electronic payments and fund transfer systems as the pillars of modern banking development and revealed noteworthy Central Bank initiatives covering new technology, payment products, consumer protection and system stability.

September 06, 2019 | Dr Indrajit Coomaraswamy
  • The Central Bank of Sri Lanka welcomes the adoption of new technologies while ensuring the safety and soundness of the banking system
  • Emerging partnerships between banks and fintechs in the country paves the way to an industry revolution
  • A recent initiative by the Central Bank of Sri Lanka is aimed at establishing a less cash society

 

The Central Bank of Sri Lanka has two core objectives: maintaining economic and price stability, and financial system stability. These two objectives are complementary to each other and affect all sectors of the economy. Efficient mechanisms for financial transactions and intermediation are two main pre-requisites for the development of any economy as every economic activity depends on fund movements and other settlements taking place in a timely and secure manner. Financial institutions play a crucial financial intermediation which is the lifeblood of any economy.

With new players and innovative products entering the banking sector, it is already witnessing unprecedented changes. The pace of change is accelerating exponentially with the emergence of new banking models. There are also new non-bank players in the fintech space who are competing to grab an ever increasing share of the banking value chain. Banks need to choose what stance to adopt in responding to these changing dynamics – whether to be a shaper of the future, a fast follower, or to manage defensively. However, staying the same is not an option in this very fast, evolving environment.

Rapid development of financial technology and electronic payments and funds transfer systems have emerged as the twin pillars of modern banking development. Products offered by banks and non-bank institutions have moved beyond conventional banking and we now have access to banking services...

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