The banking sector is one of the most dynamic and vibrant sectors of the economy, with developments taking place during the last decade in terms of institutions, instruments, range of services, and the geographic coverage. Financial sector reforms have been introduced to improve the efficiency and stability of the financial sector and further reforms are under way. |
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The following types of financial institutions are available in Sri Lanka |
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Commercial Banks, Development financial institutions, Merchant/ Investment banks, Finance companies, Leasing Companies, Mortgage banks, Venture Capital Companies, Savings Bank, Pension funds |
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The central bank is the apex institution in the financial system of Sri Lanka. At present there are 26 commercial banks in operation in the country. 10 of these are locally incorporated and the balance are branches of foreign banks. Two of the local commercial banks are state owned. |
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Rapid technological advancement including an automated check clearing house that clears checks from most part of the country within three days, ATMs, credit cards, electronic funds transfer facilities and several financial derivatives are evidence to this. Several banks have introduced tele-banking and electronic business banking and many have extended banking hours with some services being made available 24 hours a day through automation. The banking system is now linked closely to the worldwide networks via SWIFT and credit card gateways. |
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Almost all commercial banks have established Foreign Currency Banking Units. |
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The Development Financing Institutions, in Sri Lanka are The Development Finance Corporation of Ceylon (DFCC) and the National Development Bank (NDB).They provide medium and long-term project finance, especially to the export sector. |
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Merchant/ Investment Banks offer a wide array of services including identification and financing of project, leasing, bill discounting, underwriting share issues, margin trading facilities, loan syndication, bridging finance, participation in project equity, other forms of project finance, managing private share issues /placements, financial and management consultancy services etc. there are 10 such banks in Sri Lanka at present. |
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Finance Companies engage primarily in accepting deposits from public, short-term lending and hire purchase activities. There were 25 finance companies licensed with the Central Bank of Sri Lanka at end of 1995. Activities of finance companies are closely monitored by the Central Bank. |
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Leasing Companies specialising in lease finance mainly for commercial vehicle and equipment purchases are in operation in Sri Lanka. Other financial institutions such as commercial banks, merchant banks and finance companies too provide leasing facilities. |
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Insurance Companies. There are 7 companies engaged in insurance activities. Of these 5 undertake both life and general insurance, whilst one company confines itself to life insurance activities only. The main categories of general insurance are motor, fire, accident and marine. The Sri Lanka Export Credit Insurance Corporation offers export credit insurance facilities to exporters. |
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Mortgage Banks. These institutions engage in long-term lending to selected sectors. The State Mortgage and Investment Bank (SMIB) provide long term primarily for housing purposes. In addition SMIB provides other loans for agricultural purposes. |
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Savings Banks. The National Savings Bank (NSB) is the leading saving bank in Sri Lanka. NSB is state owned. Its primary activities are accepting various savings deposits from public, investing in government securities, and investing in long-term debt instruments.Recently the private sector has shown interest in setting up saving banks. |
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Employees' Provident Fund and Employers' Trust Fund (Pension Funds) are Government administered pension funds. Their contributions come by way of legally stipulated contributions from employers and employees. EPF is the single largest investor in the domestic financial market. Its primary activities are investing in Government Securities, Treasury Bills, Inter bank call money market, and Government guaranteed debentures. ETF, in addition to preceding activities, invests in the equity of companies. |
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There are several privately managed pension funds. Contribution to these funds is mainly from private sector organisation. Their operations are similar to EPF |
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Banks ad Financial Institutions in Sri Lanka
(also search through www2.lanka.net/Directory for websites)
Central Bank of Sri Lanka www.lanka.net/centralbank
Standard Chartered - www.standardchartered.com/lk/index.html
Bank of Ceylon- www.boc.lk
City Bank
Commercial Bank, www.combank.net
Deutsche Bank, www.db.com/srilanka
Development Finance Corporation of Ceylon (DFCC)- www.dfccbank.com
Hatton National Bank, www.hnb.net
Hongkong & Shanghai Banking Corporation- www.hsbc.lk/lk
Indian Overseas Bank
People's Bank www.peoplesbank.lk
Public Bank Berhad
Sampath Bank- www.sampath.lk
Seylan Bank- www.eseylan.com
Seylan Merchant Bank - www.smblk.com
State Mortgage Bank - www.lanka.net/smib
National Development Bank (NDB) www.ndbbank.com
National Savings Bank- www.nsb.lk
Union Bank
Vanik Incorporation Ltd - www.vanik.lk
Merchant Bank of Sri Lanka Ltd www.mbslbank.com
Pan Asia Bank-
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