'Bank directors must adhere to governance rules'
Directors of the licensed banks have a significant role to play in
repositioning the banking industry towards the high growth path, Central
Bank Governor Ajith Nivard Cabraal said.
Delivering the key note address at the Bank Directors Symposium held
yesterday he said directors should strictly adhere to mandatory
corporate governance rules and provide clear strategic policy direction
and strategic leadership covering all core activities of banks for the
"Sri Lanka possesses a resilient and a vibrant banking sector which
accounts for a massive portion of 60 percent of the financial system and
we need to move forward and the good news is our trends have been in the
right direction," he said.
The total assets stands at Rs 3.4 trillion, lending at Rs 1.8
trillion and deposits at Rs 2.5 trillion at present with a network of
5,789 banking outlets spread throughout the country.
These banks provide efficient payment and settlement facilities
contributing to the overall financial system stability. "The integrated
risk management framework must be put in place and clear standards must
be laid down to fix staff accountability.
Prosperity will be achieved only with strong commitment, intense
dedication, careful planning and effective implementation," the Governor
Referring to some of the ways of meeting the challenges ahead he
explained that banks have to look for new investment opportunities,
strike an appropriate balance between innovation and stability.