Wednesday, 16 October 2024 10:47

Central Bank Focuses on Stability and Risk Management of Banking Sector Featured

Sri Lanka’s financial system is on the path to improvement, with expectations of enhanced asset quality and stronger capital buffers, according to the Central Bank of Sri Lanka (CBSL) in its Financial Stability Review 2024.

As the economy stabilizes, despite lingering challenges, efforts to correct macrofinancial imbalances are showing results, driven by policy measures and reforms that support financial stability.

The CBSL praised the financial sector's progress in managing the effects of the economic crisis but emphasized the importance of sustained efforts to ensure stability in the medium to long term.

Since April 2022, Sri Lanka's banking system, including the central bank, has repaid or built reserves of $7.39 billion, despite implementing deflationary policies and selective defaults on certain debts.

 

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