Sri Lankaโs banking sector has provided a collective and categorical assurance that it remains stable, resilient, and secure despite a few recent isolated incidents of financial fraud, emphasising that these developments do not pose a threat to the safety of customer deposits or the overall integrity of the financial system.
While acknowledging that such incidents have understandably generated some concerns, the industry has reiterated that it is addressing these matters comprehensively and that it is well equipped to manage and mitigate these challenges.
This assurance was conveyed in a statement issued to the media by the Sri Lanka Banksโ Association (SLBA), which represents all licensed commercial banks in the country. Addressing recent reports of financial fraud and cyber-related incidents that have drawn heightened public attention, the Association underscored the strength of the sectorโs fundamentals and the effectiveness of ongoing regulatory oversight and risk management frameworks.
โRecent reports of financial fraud and cyber-related incidents have understandably received public attention. Industry leaders and regulators emphasise, however, that the banking sector remains fundamentally strong, resilient, and well equipped to withstand such challenges without compromising its core stability or the security of customer deposits,โ the Chairman of the SLBA Sanath Manatunge stated.
He noted that while many social media posts are either misleading or carry inaccurate information, some recent cases including electronic fund transfer fraud, have raised important questions about digital security. However, these incidents represent only a very small proportion relative to the substantial institutional capital buffers maintained by banks. Importantly, depositors are assured that customer funds remain secure, with any such losses being absorbed through institutional capital buffers rather than public deposits.
Other cybercrime cases reported in recent months, including phishing-related fraud which are not directly connected to the banking industry and hence do not manifest any vulnerabilities in the system, however underscore the evolving and increasingly sophisticated nature of digital threats faced by financial systems worldwide, the Chairman said, but stressed that these are isolated incidents and do not reflect systemic weaknesses across the banking industry.
Reinforcing this position, the Central Bank of Sri Lanka has confirmed that all licensed banks continue to maintain capital adequacy and liquidity ratios well above minimum regulatory requirements, the Association pointed out. The regulator has also reiterated its readiness to provide temporary liquidity support if required, ensuring the uninterrupted stability of the financial system.
โSri Lankaโs banking sector collectively manages trillions of rupees in assets, supported by diversified portfolios and robust governance frameworks. This scale, combined with prudent risk management practices, provides a strong foundation for absorbing shocks while maintaining public confidence,โ Manatunge said.
Source: Daily News
