Sri Lanka and Bangladesh NBFIs share financial best practices and know-how
Sri Lanka and Bangladesh Non Bank Financial Institutions (NBFIs) have linked up to share knowledge on financial best practices in their respective countries.
A 28-member Bangladesh delegation representing the leasing and finance sector visited the island on Tuesday on a 3-day fact finding mission with the aim of establishing links with their Sri Lankan counterparts.
The initiative in this regard was taken by the Leasing Association of Sri Lanka (LASL) and the Finance Houses Association of Sri Lanka (FHASL) under the leadership of Ananda Seneviratne, and Kithsiri Wanigasekara, heads of the two associations, respectively.
The associations have come forward with a joint programme that will benefit Sri Lankan NBFIs and Bangladesh NBFIs.
The Sri Lankan associations and member companies have strengthened their ties with Bangladesh counterparts for the benefit of the industry, at a forum held in Colombo on Wednesday.
LASL chairman Seneviratne briefed the Bangladesh delegation and representatives of finance and leasing sector in Sri Lanka on key aspects of Specialised Leasing Companies (SLCs) in Sri Lanka with particular attention to Finance Leasing Act No. 56 of 2000 under which SLCs are registered and regulated by the Central Bank (CB).
He said that sharing knowledge on finance and leasing best practices would be beneficial for both countries in their way forward towards economic prosperity.
FHASL Chairman Wanigasekara outlined information on the NBFI sector that includes LFCs and SLCs and the regulatory process of the CB. He also briefed them the current overview of the NBFI regulated by the CB.
The total asset base of the NBFI sector is currently over Rs. 1.2 trillion, a public deposit base Rs. 500 billion, loans and advancements accounts of nearly Rs. 800 billion.
Mr. Wanigasekara said around 50 finance and companies with well over 1,600 branches are operating countrywide.
Khalilur Rahman, Chairman, Bangladesh Leasing and Finance Companies Association (BLFCA) and Managing Director, National Housing Finance and Investments Ltd of Bangladesh said that 33 NBFIs in Bangladesh play an important role in its economy and it is a vibrant sector that caters to diverse sectors of its economy.
According to him, finance and leasing companies have emerged three decades ago and have proved as an attractive and convenient arm of financing for people. He noted that the industry has a diversified range of products and has its primary focus on the small and medium scale enterprises.