Banking Sector of Sri Lanka

-

The banking sector in Sri Lanka, which comprises Licensed Commercial Banks (LCBs) and Licensed Specialized banks (LSBs), dominates the financial system and accounts for the highest share of the total assets in the financial system. Banks play a critical role within the Sri Lankan financial system, as they are engaged in provision of liquidity to the entire economy, while transforming the risk characteristics of assets. Banks also engaged in providing payment services, thereby facilitating all entities to carry out their financial transactions.
The banking sector in Sri Lanka is monitored by the Bank Supervision Department of the Central Bank of Sri Lanka under the Banking Act, Monetary Law Act and the Exchange Control Act. Three types of financial institutions are permitted under Banking Act and the Finance Companies Act to operate in Sri Lanka by the Central Bank of Sri Lanka. They are,
  • ·         Licensed Commercial Banks
  • ·         Registered Finance Companies
  • ·         Licensed Specialized Banks

These institutions can accept deposits from the public. The number of licensed specialized banks 7 and the number of licensed commercial banks 26. The current list of banks in Sri Lanka is published by Central Bank of Sri Lanka periodically.

Licensed Commercial Bank in Sri Lanka
  1. Amana Bank PLC 
  2. Axis Bank Ltd
  3. Bank of Ceylon
  4. Bank of China Ltd
  5. Cargills Bank Ltd
  6. Citibank, N.A.
  7. Commercial Bank of Ceylon PLC
  8. Deutsche Bank AG
  9. DFCC Bank PLC
  10. Habib Bank Ltd
  11. Hatton National Bank PLC
  12. ICICI Bank Ltd
  13. Indian Bank
  14. Indian Overseas Bank
  15. MCB Bank Ltd
  16. National Development Bank PLC
  17. Nations Trust Bank PLC
  18. Pan Asia Banking Corporation PLC
  19. People's Bank
  20. Public Bank Berhad
  21. Sampath Bank PLC
  22. Seylan Bank PLC
  23. Standard Chartered Bank
  24. State Bank of India
  25. The Hongkong & Shanghai Banking
  26. Union Bank of Colombo PLC 


Licensed Specialized Banks
  1. Housing Development Finance Corporation Bank of Sri Lanka (HDFC)
  2. Lankaputhra Development Bank Ltd.
  3. National Savings Bank
  4. Pradeshiya Sanwardhana Bank
  5. Sanasa Development Bank PLC
  6. Sri Lanka Savings Bank Ltd
  7. State Mortgage & Investment Bank 

Changes in the 1980s

The Sri Lankan banking industry was changed during the late 1980's with the introduction of automation by private banking corporations. Previously, few foreign banks operating within Sri Lanka with few branches such as Hongkong and Shanghai Banking Corporation, etc. HSBC were using interactive electronic customer interfaces such as automated teller machines (ATMs). These facilities were limited to higher end customers.
In 1986, Sampath Bank opened, offering customers access to their account from any branch, instant money transfers within cities and access to automated teller machines (ATMs). 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. Telephone banking and internet banking facilities have become more popular added features of the banking industry with the growing popularity of modern telecommunication technology among Sri Lankans.
These changes helped some private sector banks to expand rapidly while increasing profitability, some banks have introduced new concepts such as "student banking centers".

Islamic banking
The Banking Act No 30 of 1988 was amended in March 2005 to accommodate the concepts of Islamic banking.





Comments

Post a Comment

Popular posts from this blog

Financial system in Sri Lanka

-
Image
What is a Financial System ? A financial system can be defined at the global, regional or firm-specific level and is a set of implemented procedures that track financial activities. On a regional scale, the financial system is the system that enables lenders and borrowers to exchange funds. A financial system is the system that covers financial transactions and the exchange of money between investors, lender and borrowers. A financial system can be defined at the global, regional or firm specific level. Financial systems are made of intricate and complex models that portray financial services, institutions and markets that link depositors with investors. Financial systems are not only evident in bank financial institutions. Some institutions have market brokering, investment and risk pooling services. However, these institutions are non-bank financial institutions that are not regulated by a bank regulation firm or agency. The components of a financial system Financial ...
Read more

Hatton National Bank

-
Image
Personal Banking products Saving General savings o    Regular savings o    Capital savings o    HNB Adhishtana - a unique savings account that will allow senders of remittances from Middle East and Gulf Region and receivers in Sri Lanka §   Higher interest rates based on the account balances §   Free Internet banking for the first year §   Free mobile banking for one year §   Free HNB Visa International Debit Card §   Immediate loan facilities of up to 90% of your account balance o    Money market savings accounts    - A Money Market Savings Account can come in handy for an individual, a corporation or an institution, if you make minimum initial deposit of Rs.500,000/-. based on the inter-bank call money market rate o    Capital transaction rupee   account (CTRM) - All existing Non- Resident Rupee Accounts (NRRAs), Non- Resident Blocked Accounts (NRBAs) and Mig...
Read more