Local banking sector not spared from ongoing brain drain: HNB chief

• Asserts need to make banking sector an attractive option for employment
• lPoints out industry has to be innovative and do things differently to manage human capital

The massive brain drain witnessed in Sri Lanka has left the local banking sector to deal with a fresh set of challenges, as the rate of talent outflow in the industry has almost doubled from

what it was five years ago, a senior banker said.
While the sector is currently facing an outflow of talent at the front-line level, which is easier to replace, the fact that individuals coming into the banks at entry-level positions not being the same as those who entered about 10 to 20 years ago, is itself a challenge, said HNB MD/CEO Jonathan Alles while sharing the challenges faced by the banking sector in terms of human capital.

He shared his views addressing a forum facilitated by the Centre of Banking Studies recently.
“We need to see how we can make the banking sector sticky for this huge segment. How do we make it interesting for them,” he said.
The banking sector has responded to this growing issue by going ahead with massive requirements. However, the problems in human capital coming at a time when banking regulations are getting more complex, and more detailed, and when the needs of clients are getting more sophisticated, has put immense pressure on existing staff to train the newcomers while handling their day-to-day activities.

Alles asserted that for the banking sector to move forward, it is essential for stakeholders to make the industry an attractive option for employment. This would include not limiting the banking sector to what it was three decades ago.
“We need to make it a little more exciting. Bring in the online aspects and gaming into the modules of training. You can’t put them on four-week programmes. It has to be shorter. There has to be new forms of communicating,” he stressed.

Alles added that fresh thinking and approach are also needed in terms of the employment contract by bringing in flexible working arrangements.
“We need to think outside the box and deeply innovate,” he said.
Since the economic crisis that multiplied the woes of the general public from what it was faced during the global pandemic, Sri Lanka is witnessing a massive brain drain across all sectors.
The primary reasons for the local talent pool exiting the country, mainly the younger generation are looking for greener pastures, better standards of living, improved quality of life, and better pay.