More foreign banks interested in Sri Lanka
More foreign banks are interested in setting up branches in Sri Lanka with the Central Bank (CB) saying some proposals are being examined. This follows the Finance Minister Ravi Karunanayake saying last year that three foreign banks were making their way to Sri Lanka. A CB official said that about five foreign banks have applied to open branches in Colombo. Amongst them the applications of one Indian and two Middle Eastern banks are being finalised, he added. He said that mostly Asian banks have applied to open their branches in Colombo and a Chinese bank has also sent an application.
“We received certain proposals this year too,” he said but was quick to reiterate that the regulator is closely examining their purpose to start operations here. “We don’t want to overcrowd the system so we’re still going through these proposals.” He said that it should also make a business case for the country to start more foreign banks. “We want to create a platform for macroeconomic stability with strong macroeconomic fundamentals, having financial sector stability so there is confidence right through the system.” Sri Lanka now has 12 foreign banks which account for just 10 per cent of the market share of the banking sector although many have been in operation in Sri Lanka for decades.