As Sri Lanka undertakes significant education reforms to better prepare students for the challenges of the modern world, the question arises: should financial literacy be included as a compulsory subject in the school curriculum?
With the Government considering the introduction of financial literacy education for students from Grades 6-9, there is growing discussion on whether such knowledge is essential for young learners.
Financial literacy covers critical skills such as budgeting, saving, and responsible use of credit – areas that can impact individuals’ long-term economic well-being. As the country re-evaluates its educational priorities, it is important to examine the potential benefits and implications of integrating financial literacy into the existing curriculum and how it aligns with broader goals of equipping students with practical life skills.
Financial literacy statistics
Financial literacy plays a crucial role in empowering individuals to make informed decisions about managing their money, savings, and investments.
In an increasingly complex financial environment, having a solid understanding of financial concepts enables people to effectively navigate banking services, plan for the future, and avoid common pitfalls such as debt traps. This is especially important for fostering economic stability and inclusion across all segments of society.
A recent financial literacy survey in Sri Lanka reveals encouraging progress in financial inclusion across the population. As of 2021, 89.3% of individuals aged 15 and above hold an account with a financial institution, significantly surpassing the South Asian regional average of 73.6% and the lower-middle-income country average of 65.8%.
Among youth aged 15-24, account ownership is notably high at 88.9%, indicating strong engagement with formal financial services among younger generations. Additionally, female account ownership stands at 89%, well above the regional average of 65.8%, highlighting strides in gender inclusion within financial access.
Furthermore, over a third (35.2%) of account holders opened their first account to receive wages or Government payments, underscoring the role of institutional payments in driving account adoption. While these figures reflect a robust financial landscape, the survey also points to opportunities for growth in mobile money account usage, an area targeted for development in Sri Lanka’s Financial Literacy Roadmap (2024-2028).
Financial Literacy Roadmap
The Financial Literacy Roadmap, an initiative under the National Financial Inclusion Strategy (NFIS), was developed following the first-ever nationally representative Financial Literacy Survey conducted jointly in 2021 by the Central Bank of Sri Lanka (CBSL) and the International Finance Corporation (IFC) of the World Bank Group.
This survey, which included 4,800 households, used an internationally recognised methodology adapted to Sri Lanka’s context to assess financial knowledge, attitudes, and behaviours across the population.
The results showed that while Sri Lankans generally possess satisfactory levels of financial knowledge – attributed to long-term efforts by various stakeholders – there remains a gap in translating this knowledge into positive financial behaviour. Moreover, existing financial literacy initiatives have been fragmented, indicating a need for coherent policy guidance to enhance their overall impact.
The roadmap emphasises the critical importance of enhancing financial knowledge among Sri Lanka’s younger generation as a cornerstone for economic growth. Introducing financial education at early ages helps build a foundation where individuals can make informed financial decisions throughout their lives.
By teaching essential skills such as budgeting, saving, and investing, financial literacy education prepares youth to avoid common financial pitfalls, reduces dependency on social welfare, and promotes financial independence and resilience.
Beyond personal finance, the roadmap highlights that financially educated youth are better equipped to engage in entrepreneurship and innovation, key drivers of job creation and economic development. This focus aims to nurture a generation capable of seizing economic opportunities, fostering a vibrant entrepreneurial culture, and enhancing Sri Lanka’s international competitiveness.
The Financial Literacy Roadmap commits to providing young Sri Lankans with the knowledge and tools necessary to navigate the financial world effectively, supporting their ability to contribute to a prosperous and sustainable future. By prioritising financial education in schools, the roadmap seeks to build a financially savvy, resilient population that underpins the country’s long-term economic progress.
Differing expert opinions
University of Peradeniya (UOP) Department of Economics and Statistics Prof. Ananda Jayawickrama voiced reservations regarding the decision to introduce financial literacy as a compulsory subject for students from Grades 6-9 under the Government’s education reforms.
According to Prof. Jayawickrama, while financial literacy is undeniably an important skill, the timing and content of the curriculum need careful consideration.
He pointed out that younger students did not require detailed lessons on complex financial topics such as interest rates, credit ratings, or financial markets. Instead, early education should focus on building fundamental knowledge about society and fostering curiosity, rather than delivering narrowly vocational training.
“The real need for financial literacy arises closer to the age when students start making independent financial decisions,” he said, suggesting that such education may be better suited for O/Level or A/Level students.
Prof. Jayawickrama further emphasised that education should aim to develop well-rounded individuals capable of adapting to various life situations, rather than training students for specific economic roles at an early age. He also noted the importance of distinguishing between vocational training and general education, cautioning against conflating the two.
He expressed concerns that the education reforms introducing financial literacy may be influenced by external pressures from international bodies like the World Bank and the Asian Development Bank. “While improving financial literacy is important, these reforms must align with Sri Lanka’s broader educational and social objectives to truly benefit students,” he added.
Govt. position
Nevertheless, when contacted by The Sunday Morning, Education Ministry Education Reforms Division Assistant Secretary Vasana Edirisuriya confirmed that financial literacy would indeed be included in the curriculum from Grades 6-9.
She stated that the move aimed to equip students with essential financial skills early on to better prepare them for future economic participation.