Central Bank gears up for a national level financial literacy initiative
The Central Bank is to take a national level financial literacy initiative as the most appropriate tool to reach higher financial inclusion through the improvement of financial literacy among Sri Lankans.
At the launch of the Financial Literacy Roadmap 2024-2028 in Colombo on Tuesday, it transpired that there was a significant gap between satisfactory financial knowledge and
lacking financial behaviour among Sri Lankans
To address this, the Central Bank has taken a collaborative effort, resulting in the development of a comprehensive five-year Financial Literacy Roadmap involving over 40 stakeholders.
Central Bank Governor Nandalal Weerasinghe told the gathering that empowering the consumers was imperative to safeguard them from the frauds and scams rising with technology.
In the long run, the burden of the state funded social safety programmes on the government will be eased by promoting financial literacy as the financially literate people could overcome poverty through viable financial decisions.
He expressed the belief that this roadmap with evidence-based policy framework would be able to positively change the financial behaviour towards the betterment of the people.
It also provides direction and guidance not only to policy makers and financial literacy service providers but also illuminates the hopes of Sri Lankans for a better and financially inclusive future, he added.
Azusa Kubota, Resident Representative of the United Nations Development Programme (UNDP), said that around 70 per cent of Sri Lankans have had to reduce at least one meal per day due to economic hardships.
She stressed that the economic crisis likely aggravates debt burden, with many individuals, especially women-headed households, lacking basic financial literacy.
“Women often sign agreements for micro finance or bank loans in languages they do not understand, unaware of their rights and responsibilities, leading to poor financial decisions,” she clarified.
Ms. Kubota emphasised the need of financial literacy programmes, debt management strategies, and livelihood diversification to mitigate critical vulnerabilities.
The roadmap also revealed that 33.4 per cent of the population experiences vulnerability related to household debt, often incurring debt for essential needs like food, medical care, and education, she added.
The Roadmap, a cornerstone of Sri Lanka’s National Financial Inclusion Strategy (NFIS), offers guidance to all stakeholders engaged in financial literacy initiatives, aligning them towards a common objective: Improving the financial behaviour of the people and bolstering their financial resilience.
Developed through collaborative efforts among various stakeholders, led by the Central Bank through the NFIS Secretariat under the Regional Development Department, the Roadmap sets out to foster financial inclusion, enhance consumer protection, and fortify financial stability.
With a focus on nurturing better financial habits and enhancing overall financial capability among Sri Lankans, the Roadmap seeks to encourage informed and responsible usage of the diverse range of financial products available in the local market.
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