New Finance Association targets financial literacy boost

Sri Lanka Finance Association inaugural meeting chaired by President Prof. Lalith Samarakoon. Prof. D.B.P.H. Dissa Bandara, Executive Secretary, Prof. Weerakoon Banda, Treasurer, Prof. W.M. Abeyratne Bandara, Director (Membership) along with the other members of the association Dr. A.A. Azeez, Colombo University, Dr. Manjula K.Wanniarachchige, Ruhuna University, Dr. A. Ekanayake of Peradeniya University, L.M.C.S. Menike, Sabaragamuwa University, Dr. A.L Abdul Rauf of South Eastern University are also present

By Shannine Daniel

Sri Lanka Finance Association (SLFA) was inaugurated last week with the main purpose of battling financial illiteracy, which is currently at a dismal 5%, and with advancing the field of finance and other related areas.

With the financial literacy rate in Sri Lanka at less than 5% the association hopes to increase literacy in finance by engaging in research and discussion and through various conferences, forums and seminars. 

The association spearheaded by the University Of St. Thomas Department Of Finance Chair Professor Lalith Samarakoon, consists of several academics within the finance stream from all State universities.

“We want to improve the Public understanding of financial knowledge and issues and contribute to the advancement of financial literacy,” Samarakoon stated. 

Their primary thought is that of the students and their knowledge of finance, Samarakoon further commented. In regard to this one of the main objectives of the SLFA is to promote the engagement of students in the field of finance by lobbying for the development of financial education in universities and secondary schools through workshops, conferences and even student chapters of the SLFA. 

University of Sri Jayawardenapura Finance Department Head Hareendra Dissabandara stated that many Sri Lankan people are facing issues related to finance because their grasp of financial knowledge is low. 

“Our Financial Literacy is less than 5%. Even some of the educated people don’t understand it,” he revealed. 

Adding to this University of Sri Jayawardenapura Senior Lecturer Proffesor Abeyratne Bandara stated that the rural population is most affected, because financial institutions tend to take deposits from those areas to fund large companies and do not provide quality services to them.

Furthermore University of Peradeniya Senior Lecturer Dr. Athula Ekanayake revealed that people are ready to invest with people who earn their trust without actually considering basic financial principles such as the time value of money.

The SLFA also hopes to act as a pressure group for the government when it comes to formulating policies especially related to taxation. Bandara noted that while there are pressure groups from all other industries that push for favourable outcomes for themselves, there is a lack of such pressure groups in the financial industry. 

The other objectives of the association include advocating the adaption of sound financial policies and practices across all institutions in the country, the promotion of, application and development of high quality basic, applied and policy research in finance and related fields and collaboration with similar professional associations throughout the world. It also hopes to publish journals and other media to promote financial research, ideas and information. 

Samarakoon also stated that in the face of issues of national interest relating to finance arise the SLFA will come together in order to voice their opinions and observations to formulate the necessary policies that will be presented to the government.

The in terms of administration the SLFA will consist of the Executive Committee and a Corporate Advisory Board of 10 members in future. It is open for all academics, practitioners and policymakers in Sri Lanka and worldwide with an interest in finance in general and finance in the context of Sri Lanka in particular. 

Pix by Gitika Talukdar