Association of Professional Bankers Sri Lanka kicks off 35th Anniversary Convention 2025

Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma

CBSL Governor Dr. Nandalal Weerasinghe (Virtual)

APB President Halin Hettigoda

APB – Sri Lanka confers ‘Outstanding Contribution to the Banking Industry’ award on Upali De Silva (second from left) - Pix by Upul Abayasekara

• ‘The Role of Banking in Revitalising Sustainable Recovery and Economic Growth’ under spotlight
• Deputy Minister of Finance Dr. Harshana Suriyapperuma says Budget 2025 focuses on investment, reform and public welfare
• CBSL Governor Dr. Nandalal Weerasinghe says Sri Lanka had shown greater stability in 2024, with promising progress for 2025

By Divya Thotawatte 

The Association of Professional Bankers Sri Lanka (APB) last night kicked off its 35th Anniversary Convention 2025 at the Cinnamon Life, focusing on the theme ‘The Role of Banking in Revitalising Sustainable Recovery and Economic Growth.’

The inauguration of the Convention saw key contributors of the industry being recognised and celebrated, while experts spoke on enhancing financial resilience in the current economic landscape. The Convention will today comprise of three sessions – Innovative Solutions for Financial Revival, Digital Transformation in Banking for Economic Empowerment, and Re-Imagining the Human Capital. The Convention will conclude with a CEOs Forum on “Steering the Ship in Uncertain Waters.”

Chief Guest Deputy Minister of Finance Dr. Harshana Suriyapperuma at the inauguration said responsible use of public funds, creating a production economy, building human capacity and digital engagement, and protecting investors were some of the key considerations and processes behind the Budget 2025.

“As a nation, we are planning to seize the opportunity right ahead of us. That is why the Budget is focusing on the growth to take the country to the next level. The potential ahead of us is enormous. So therefore, we want to focus on the solutions that the country can offer to businesses, to citizens, and to investors to join this journey – to take the country out of this situation where we are now and into the future that we all wanted,” he said. 

A key strategy behind the creation of the Budget 2025 was a focus on shifting Sri Lanka towards a production-driven economy, reducing reliance on imports and encouraging sectors such as IT, hospitality, manufacturing, and agriculture. 

“Because as a country, as businesses, as banks, for you to get your cash flow, business volumes need to be there in the economy. Transactions need to happen in the economy. So it is our responsibility and our message that we will create a production economy that is vibrant enough for stakeholders to take part in business activities and come into the formal economy.”

Formalising the economy was another important consideration, because many economic activities remained outside the formal banking system, limiting financial transparency and reducing tax revenue. The strategies of the current Government were therefore designed to invite those transactions into the formal banking sector, providing them with more opportunities while ensuring tax compliance. He also highlighted that while the past misuse of public funds discouraged tax payments, the new Government was committed to reversing this perception. 

Increasing human capital was another primary strategy focused on in the Budget 2025.

“Building human capacity is another item that we focus on in the Budget. Building human capacity will pay dividends in time to come. That is why we have a lot of investments, and a lot of allocations, for the university sector, education sector, and healthcare sector to ensure we provide adequate resources for those investments to support the development of human resources of the country.”

With this focus, the Budget was also designed with inclusivity in mind, preventing vulnerable groups from being left behind. Creating equal opportunities for everyone irrespective of their abilities, background, location – be it district or province – to get connected to economic value addition was important, he added. 

Digital engagement was another key focus and strategy to which the Government had allocated a lot, the Deputy Minister said. “A dedicated Ministry has been established due to people leaving Sri Lanka. There is a capacity or a vacuum that has been created. At the same time, in order to harness the efficiencies, we need to get ourselves connected to the developments in the rest of the world. So, a lot of attention and focus has been given to ensure our community, our businesses, and our individual citizens are able to take part in this digital journey.”

Additionally, Dr. Suriyapperuma highlighted key legislative reforms that the Government was introducing to attract investment and ensure economic stability.

• Investment Protection Bill – to assure investors that their assets were safe 
• Insolvency Bill – to provide businesses with legal recourse during financial struggles 
• Data Sharing Bill – to enhance intergovernmental data exchange for efficiency 
• New Statistics Act – to improve national data accuracy for better decision-making 
• Public Procurement and Assets Management Acts – to ensure transparency and accountability within every sector 

“Unfortunately, as a nation, we are sitting on a mountain of debt. The single largest item in our Budget is to provide allocations to repay that debt, to service that debt,” Dr. Suriyapperuma added. 

Central Bank (CBSL) Governor Dr. Nandalal Weerasinghe also spoke at the event via a televised message. He underlined that Sri Lanka’s financial system showed stability and growth prospects for 2025. Sri Lanka had shown greater stability in 2024, with promising progress for 2025, he said, highlighting that improved macro-financial conditions and evolving risks were being carefully managed to ensure sustainable economic growth. 

“The CBSL continues to centre the improved environment for the financial sector, while ensuring that the finance sector is actively contributing to the objective of limiting the burdens of the people.”

To strengthen the banking sector, the CBSL has undertaken key regulatory reforms under the Banking Amendment Act. These include reductions on large exposures, corporate governance, liquidity, related party transactions, and posture maintenance. Additionally, a market-driven consolidation framework for licenced banks was being established to ensure a strong and 

resilient banking system, Dr. Weerasinghe said. 

Moreover, recognising the struggles of Small and Medium Enterprises (SMEs) in recent economic conditions, the CBSL has also issued a circular to banks regarding recycling preferences for SMEs. 

“Banks are expected to submit transparent variance handling in their search with respect to disputes that may arise on valuation of production properties. These measures are expected to help revive business activities of SMEs and facilitate sustainable growth of the country. Accordingly, it is expected that the banking sector will implement real measures issued by the CBSL supporting viable growth, to repeat their processes, support employment, and to foster more inclusive and sustainable growth in the country,” Dr. Weerasinghe explained.