New foreign banks entering market should incorporate business locally: CB

03 Jan 2014 - {{hitsCtrl.values.hits}}

New foreign entrants to Sri Lanka’s banking sector will be required to incorporate their businesses locally commencing from 2016, according to Central Bank of Sri Lanka (CBSL) Governor, Ajith Nivard Cabraal.

The requirement will not apply to foreign banks already operating in Sri Lanka but will only be imposed on foreign banks which enter the market from 2016.

“This requirement is being imposed in order to maintain a higher standard of transparency and accountability for such banks in Sri Lanka.

“We will not be requiring foreign banks already in the country to comply as we did not want to disturb our existing relationships. However we feel that requiring new entrants to incorporate locally will demonstrate greater participation with the economy,” Cabraal stated.

According to CBSL data, currently there are 10 foreign banks operating in Sri Lanka with an asset base below Rs. 50 billion.

Economy

New foreign banks entering market should incorporate business locally: CB

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