‘SL banking sector stable due to being strongly capitalized’

H.D.H Senewiratne

Sri Lanka’s banking and financial sectors were stable because they were strongly capitalized, having ample funds for lending and helping the sector to perform well during the recent past, Chief Executive Officer - Multi Finance Plc Ajith Perera said.

Ajith Perera. picture by Saliya Rupasinghe

“It was quite visible that our banking and financial sectors were strong due to the prudent risk management system that was in place than any other sector in the country. Therefore, most banks and financial institutes have performed well during the recent past, “Perera told the Daily News Business.

He said that despite all challenges they were able to survive in the business by going for different strategies to tap the untapped markets in the business. At present, the company’s co businesses are leasing, higher purchasing, short to medium term lending, micro financing and trade financing, he said.

“Due to our prudent risk management system, we were able to survive highly regularized businesses in the country, which focuses on satisfying the customer exceptionally,” Perera said.

The company was complied with all Central Bank requirements, i.e. maintaining a capital at a level of not less than 10 percent of risk weightage, maintaining the co-capital level at not less than five percent of risk weightage assets and held liquidity assets less than the outstanding value of the time deposits at the close of the business in anyway, he said.

Perera said that they were also focusing on trade financing and adopted an ambitious plan targeting professionals who were mainly entitled for car permits. Under this concept they would be providing a value added backward integration to help customers to import and get down a very good vehicle, value for money from Japan, he said. “We also help the customers to open up Letters of Credit and grant loans for the purchase of a motor vehicle fitting to his/her choice. We also help the customers to select the best vehicle through our date base free of charge, “Perera said.

The CEO said that once the LC was opened, one could import a motor vehicle lower than the local price, subject to government regulations. Therefore, this has really helped the professionals who were entitled for a government motor permit, he said.

Multi Finance Plc was established in 1974, registered under the Securities and Exchange Commission and the Central Bank of Sri Lanka and functions under the Entrust Group of Companies.