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Sri Lanka launches National Financial Inclusion Strategy

05 Mar 2021

By Zahida Rizvi   Sri Lanka’s first National Financial Inclusion Strategy (NFIS) was launched yesterday (4) in a joint effort led by the Central Bank of Sri Lanka (CBSL) and assisted by the International Finance Corporation (IFC). Speaking at the panel discussion on the NFIS, CBSL Governor Prof. W.D. Lakshman said: “Improving financial inclusiveness will enable the Central Bank to conduct macroeconomic activities effectively.” The strategy is structured around four core pillars: increasing access to digital finance and payments; boosting access to finance for micro, small and medium enterprises (MSMEs); protecting financial consumers; and improving financial literacy among consumers. State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal further pointed out that the CBSL’s main role is to ensure economic and financial stability, for which this strategy, through the envisioned platform, will be an important ingredient. “Although other areas need to be nurtured, partnership, and engagement of other stakeholders is needed to achieve financial inclusion,” he added. The development of the NFIS by the stakeholders, both public and private, during the extensive consultative process in developing the strategy, is an effort by the Government to minimise provincial income disparities, urban-rural inequalities, and to promote inclusive growth. It also aims to develop comprehensive and robust data collection mechanisms, improve and expand financial infrastructure, leverage policy tools, and create an enabling regulatory environment to boost financial inclusion in the country. The basis of the strategy was developed through a national survey conducted by CBSL, supported by IFC, in 2018.  According to the IFC Vice President for Asia and Pacific Alfonso Garcia Mora, Sri Lanka continues to move forward, it’s crucial to have a strong, inclusive, and sustainable financial sector.  “Greater access to financial services means better living standards, better business opportunities, and investments, and we have witnessed from the impact of Covid-19 that digital finance became a safe, secure, and timely option for many people, and ready to help foster a more resilient and inclusive financial system for Sri Lanka,” he said.  He further elaborated that 62% of Sri Lankan women are aware of financial transactions through mobile phones, yet only 32% are comfortable using the technology.  IFC has been a longstanding partner of the CBSL, joining this initiative in 2018. With the launch of the NFIS, Sri Lanka joins over 60 countries that have launched similar strategies.


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