The basic knowledge of Banking industry
Introduction
When Sri Lanka or then known as Ceylon was under the reign of the Sinhalese Kings and even the Portuguese (1505-1656) and Dutch (1656-1796), banks and banking were still alien to the Sri Lankan culture. It was only during the British colony (1802-1948) that Banking was introduced to Sri Lanka with mainly branches of foreign banks being set up.
The CBSL was established in 1950 under the MLA No.58 of 1949 which was a major milestone in Sri Lanka’s economic history. Today, the Central Bank is the governing body of commercial banks.
Commercial Banks have extended their services from traditional banking to other areas. Examples include, merchant and investment banking, financial and marketing consultancy services, leasing, insurance, hire-purchase, factoring, bill discounting, pawn broking, underwriting etc, etc. They have also changed from manual systems to computer based systems and now to internet based systems and with especially the new entrants to the field playing a major role in introducing or making use of state-of-art technology to deliver their products.
Licensed Commercial Banks
Licensed Specialised Banks
· Liquidity Ratios
Financial Institution in Sri Lanka
Institutions Regulated by the Central Bank of Sri Lanka- Licensed Commercial Banks
- Licensed Specialized Banks
- Registered finance companies
- Registered Finance Leasing Establishments
- Authorized Primary Dealers
A law to regulate and supervise Micro-Finance
Institutions is also being formulated. Action is being taken to establish an
independent authority for monitoring micro- finance institutions.
Licensed Commercial Banks
(As
at 01st March 2016)
No
|
Name & Address
|
Contact Nos.
|
|
1.
|
Amana
Bank PLC
403,
Galle Road,
Colombo
3
|
Tel.
Fax
E-mail
Website
|
(94)
11 7756000
(94) 11 2574419
feedback@amana.lk
|
2.
|
Axis
Bank Ltd
356,
Galle Road
Colombo
3
|
Tel.
Fax
E-mail
Website
|
(94) 11 2577733
(94) 11 2577724
manojkumaragrawal@
|
3.
|
Bank
of Ceylon
BOC
Square
No
1, Bank of Ceylon Mawatha
Colombo
1
|
Tel.
Fax
E-mail
Website
|
(94)
11 2446790 – 811
(94) 11 2331160
boc@boc.lk
|
4.
|
Cargills
Bank Ltd
696, Galle Road
Colombo 03
|
Tel.
Fax
E-mail
Website
|
(94) 11 7640000
(94)
11 7640502
infor@cargillsbank.com
|
5.
|
Citibank,
N.A.
65C,
Dharmapala Mawatha
Colombo
7
|
Tel.
Fax
E-mail
|
(94)
11 2447316 - 8
(94)
11 2445487
ravin.basnayake@citi.com
|
6.
|
Commercial
Bank of Ceylon PLC
"Commercial
House"
21,
Sir Razik Fareed Mawatha,
P.O.
Box 856
Colombo
1
|
Tel.
Fax
E-mail
Website
|
(94) 11 2430420
(94)
11 2449889
info@combank.net
www.combank.net
|
7.
|
Deutsche
Bank AG
86,
Galle Road
Colombo
3
|
Tel.
Fax
E-mail
|
(94) 11 2447062
(94)
11 2447067/2449589
rohan.rodrigo@db.com
|
8.
|
DFCC
Bank PLC
73/5,
Galle Road,
Colombo
3
|
Tel.
Fax
E-mail
|
(94)
11 2442442
(94)
11 2440376
info@dfccbank.com
|
9.
|
Habib
Bank Ltd
70A,
Dharmapala Mawatha
Colombo
03
|
Tel.
Fax
E-mail
|
(94)
11 2370391-2
(94)
11 2370389
arif@hbl.lk
|
10.
|
Hatton
National Bank PLC
HNB
Tower,Level 21
479,
T B Jayah Mawatha,
Colombo
10
|
Tel.
Fax
E-mail
|
(94)
11 2664664
(94) 11 2662772
moreinfo@hnb.net
|
11.
|
ICICI
Bank Ltd
58,
Dharmapala Mawatha
Colombo
7
|
Tel.
Fax
E-mail
|
(94) 11 4242400
(94)
11 4242442/4719611
biju.jacob@icicibank.com
|
12.
|
Indian
Bank
57,
Sir Baron Jayatilleke Mawatha
Colombo
1
|
Tel.
Fax
E-mail
|
(94)
11 2323402
(94)
11 2447562
ibcol@sltnet.lk
|
13.
|
Indian
Overseas Bank
139,
Main Street
Colombo
11
|
Tel.
Fax
E-mail
|
(94)
11 5324422
(94)
11 2447900
|
14.
|
MCB
Bank Ltd
8,
Leyden Bastian Road
Colombo
1
|
Tel.
Fax
E-mail
|
(94)
11 2448765
(94)
11 2448764
|
15.
|
National
Development Bank PLC
40,
Nawam Mawatha
Colombo
2
|
Tel.
Fax
E-mail
|
(94) 11 2448448
(94)
11 2440262
contact@ndbbank.com
|
16.
|
Nations Trust Bank PLC
242, Union Place Colombo 2.
|
Tel.
Fax
E-mail
Website
|
(94) 11 4313131
(94)
11 2307854
info@nationstrust.com
|
17.
|
Pan
Asia Banking Corporation PLC
450,
Earls court
Galle
Road
Colombo
3
|
Tel.
Fax
E-mail
|
(94) 11 2565565
(94)
11 2565558
pabc@pabcbank.com
|
18.
|
People's
Bank
75,
Sir Chittampalam A Gardiner Mawatha Colombo 2
|
Tel.
Fax
E-mail
Website
|
(94)
11 2327841
(94)
11 2446411
info@peoplesbank.lk
|
19.
|
Public
Bank Berhad
Colombo
Branch
340,
R A de Mel Mawatha
Colombo
3
|
Tel.
Fax
E-mail
|
(94)
11 2576289-92
(94)
11 2573958
pbbslk@publicbank.com.lk
|
20.
|
Sampath
Bank PLC
110,
Sir James Peiris Mawatha
Colombo
2
|
Tel.
Fax
E-mail
Website
|
(94)
11 4730630
(94)
11 4712013
oper.mgr@sampath.lk
|
21.
|
Seylan
Bank PLC.
90,
Galle Road
Colombo
3
|
Tel.
Fax
E-mail
Website
|
(94)
11 2456789
(94)
11 2456456
info@seylan.lk
|
22.
|
Standard
Chartered Bank
37,
York Street
Colombo
1
|
Tel.
Fax
E-mail
|
(94)
11 2480000
(94)
11 5450007
dastidar@sc.com
|
23.
|
State
Bank of India
16,
Sir Baron Jayatilleke Mawatha
Colombo
1
|
Tel.
Fax
E-mail
|
(94)
11 2326133-5
(94)
11 4446868
ch.lk@statebank.com
|
24.
|
The
Hongkong & Shanghai Banking
Corporation
Ltd (HSBC)
24, Sir Baron Jayatilake Mawatha
Colombo 1
|
Tel.
Fax
E-mail
|
(94)
11 2325435
(94)
11 2430205
ceosrilanka@hsbc.com.lk
|
25.
26.
|
Union
Bank of Colombo PLC
64,
Galle Road,
Colombo
3
Bank of China Ltd,
40,York Street Colombo1 |
Tel.
Fax
E-mail
Website
Tel.
Fax
E-mail
Website |
(94)
11 2374100
(94)
11 2370692
info@unionb.com
|
Licensed Specialised Banks
(As
at 01st March 2016)
No
|
Name & Address
|
Contact Nos.
|
|
1.
|
Housing Development
Finance
Corporation Bank of
Sri Lanka
(HDFC)
P.O.Box.2085,
Sir Chittampalam A
Gardiner Mw
Colombo 2
|
Tel.
Fax
E-mail
Website
|
(94)
11 2446241
|
2.
|
Lankaputhra
Development Bank Ltd.
80, Nawala Road
Nugegoda
|
Tel.
Fax
E-mail
Website
|
|
3.
|
National Savings Bank
"Savings
House"
255,Galle Road
Colombo 3
|
Tel.
Fax
E-mail
Website
|
|
4.
|
Pradeshiya
Sanwardhana Bank
No. 933, Kandy Rd
Wedamulla
Kelaniya
|
Tel.
Fax
E-mail
Website
|
(94)
11 2035454
|
5.
|
Sanasa Development
Bank PLC
12, Edmonton Road
Kirulapone
Colombo 6
|
Tel.
Fax
E-mail
Website
|
|
6.
|
Sri Lanka Savings
Bank Ltd
No 265, Ward
Place
Colombo 7
|
Tel.
Fax
E-mail
Website
|
(94)
11 2674700-3
(94)
11 2674706/2674705
|
7.
|
State Mortgage &
Investment Bank
269, Galle Road
Colombo 3
|
Tel.
Fax
E-mail
Website
|
|
Performance
of the Banking Sector
The banking sector
continued to dominate the financial sector, accounting for 60.3 per cent of the
total assets of the financial sector and its performance remained robust during
2017.
The implementation of timely and appropriate regulatory actions and adoption of
enhanced risk management
Measures
helped the sector to maintain risks (credit, market, liquidity, operational and
others) at manageable levels. Further, as a result of such prudential measures,
undue concentration of loans was addressed, while operational performance and
the resilience of the sector were further improved. Asset growth, which picked
up during the first half of the year, gradually moderated during the second
half of the year, following the adoption of targeted policy actions.
Improvements in asset quality were seen in the decline in NPL ratios. Banking
sector profits in 2017 improved compared to the previous year as reflected in
the improvement in both the Return on Assets (ROA) and the Return on Equity
(ROE) ratios. Overall, the banking sector operated with sufficient capital and
liquidity buffers throughout the year.
·
Total
liquid assets of the sector increased by Rs. 474 billion (19.2 per cent) to Rs.
2,939 billion by end 2017. Government securities accounted
Composition of Statutory Liquid
Assets of the Banking Sector
Item
|
2016
(a)
|
2017
(b)
|
Change (Rs. bn)
|
|||
Share
Rs. bn
(%)
|
Share
Rs. bn
(%)
|
2016
(a)
|
2017
(
b )
|
|||
Treasury
Bills
|
506.6
|
20.5
|
742.4
|
25.3
|
-176.5
|
235.9
|
Treasury
Bonds
|
843.0
|
34.2
|
960.3
|
32.7
|
162.6
|
117.3
|
Sri
Lanka Development Bonds
|
451.7
|
18.3
|
515.6
|
17.5
|
-11.4
|
63.8
|
Cash
|
122.0
|
4.9
|
165.5
|
5.6
|
5.9
|
43.5
|
Money
at Call
|
114.8
|
4.7
|
109.8
|
3.7
|
-27.0
|
-5.0
|
Balance
with Banks Abroad
|
322.2
|
13.1
|
307.7
|
10.5
|
93.1
|
-14.5
|
Other
|
105.6
|
4.3
|
138.1
|
4.7
|
-7.7
|
32.5
|
Total Liquid Assets
|
2,465.9
|
100.0
|
2,939.4 100.0
|
39.0
|
473.6
|
|
(a) Revised
(b) Provisional
|
Source: Central Bank of Sri Lanka
|
|||||
· Liquidity Ratios
·
Annual
Profit of the sector
Profit
of the Banking Sector
Item
|
2016 (a)
|
2017 ( b )
|
||
Amount
(Rs. bn)
|
As a % of Avg.
Assets
|
Amount
(Rs. bn)
|
As a % of Avg.
Assets
|
|
Net
Interest Income
|
304.3
|
3.6
|
341.6
|
3.5
|
Interest Income
|
757.5
|
8.9
|
971.9
|
9.9
|
Interest Expenses
|
453.2
|
5.3
|
630.2
|
6.5
|
Non-Interest
Income
|
102.9
|
1.2
|
122.3
|
1.3
|
Foreign Exchange Income
|
25.9
|
0.3
|
23.5
|
0.2
|
·
Capital
Adequacy
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