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Banking sector thrives amidst general economic hardship in Sri Lanka

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There is a sense of confusion and frustration among the public as for how the banking sector is flourishing while they are still grappling with the repercussions of the economic crisis

While Sri Lanka grapples with the lingering impacts of its recent economic crisis, a stark contrast emerges: the banking sector is reporting robust earnings and profits, while many citizens continue to face hardships.

The banking industry, often viewed as a bellwether of economic health, has seen a remarkable turnaround, with earnings soaring by 52.9% in the first quarter of 2025 alone. This growth comes amid a broader economic context where the country is slowly recovering from a devastating downturn, leaving many to wonder how banks can thrive while the everyday citizen struggles to make ends meet.

Recent data indicates a mixed economic environment in Sri Lanka, with the economy growing by 4.8% in the first quarter of 2025. This growth, slightly lower than the previous year’s 5.1%, was largely driven by the industrial and services sectors, which expanded significantly. The banking sector, a key component of the services industry, benefited from improved net interest income and lower impairment charges, contributing to its impressive profit margins.

Despite this growth, challenges remain. The agriculture sector has contracted by 0.7%, while food inflation is still at an elevated level, adversely impacting the cost of living for many Sri Lankans.

“Based on the new economic reports, the surge in banking profits can be attributed to several factors,” an economic analyst told The Island Financial Review.

“The resumption of business activities post-crisis has led to a rise in demand for financial services, propelling the banking sector’s success. However, while banks are experiencing a financial renaissance, the wider economic reality is one of hardship for many. This has raised questions regarding the sustainability of such growth in the banking sector, particularly in the face of rising debt levels and a depreciating currency,” he said.

“The juxtaposition of thriving banks and struggling citizens has created a sense of confusion and frustration among the populace. Many are questioning how the banking sector can flourish while they grapple with the repercussions of the economic crisis, including high cost of living and stagnant wages for most of the working populace,” he noted.

“Moreover, the government’s rising debt levels, which exceeded Rs. 29 trillion by February 2025, add to concerns about the overall economic health and sustainability of recovery efforts. This situation draws attention towards wealth distribution and the need for policies that ensure the benefits of economic growth are felt by all layers of society, not just the financial elite,” he continued.

“While the financial performance of banks is a positive indicator of economic resilience, it also underscores the urgent need for a more equitable economic framework that addresses the concerns and needs of average citizens. Policymakers must focus on balancing the banking sector’s financial success with social responsibility to ensure a truly inclusive recovery for all Sri Lankans,” he concluded.

By Sanath Nanayakkare



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Kandy driving school hits 100,000-driver milestone, sets sights on expansion

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RWMNJ Bandara MD Dhasuini Driving School

Dhasuni Learners in Kandy have trained over 100,000 drivers, marking a major milestone in the institution’s journey from a modest start-up to one of the region’s leading driver education providers.

Founded on March 31, 2008, in the historic hill capital, the institution began with just a single van, one three-wheeler and one motorcycle. Built on what its founder describes as a commitment to road safety and public service, the driving school has since expanded into a multi-branch operation with six centres across the Kandy district.

Today, Dhasuni Learners has emerged as a significant player in Sri Lanka’s driver training sector, producing thousands of licensed motorists annually while also contributing to local employment generation. The organisation’s broader mission, according to its management, has been to foster disciplined and road-conscious drivers who adhere to traffic regulations.

Over the years, the institution has received multiple accolades for its service standards and entrepreneurial achievement. These include the ‘Best Young Entrepreneur Award’ and ‘Seva Taru Tuthe Award’ in 2018, followed by One-Star and Two-Star service ratings from the Ministry of Industries in 2019 and 2020. It has also secured top rankings from the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) at national and provincial levels.

More recent recognitions include the ‘Best Driving School Award’ in 2023 and the ‘Pitkal Award’ for business excellence, along with a 2025 honour from the Trade Front in collaboration with the Ministry of Industry.

by SK Samaranayake

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HNB Life Introduces “Privileged Protect”, a Future-Ready Protection Solution for a New Generation

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Marking a significant milestone in its journey as it celebrates 25 years of trust and transformation, HNB Life has introduced Privileged Protect, a novel universal life insurance solution designed to meet the evolving financial and protection needs of modern Sri Lankans.

Developed as an evolved protection offering, Privileged Protect combines short-term premium commitments with long-term financial security, giving customers the flexibility to build wealth while safeguarding their future and loved ones.

Designed for individuals seeking comprehensive life protection with greater financial convenience, the product offers a shorter premium paying term while ensuring continued long-term coverage and investment growth opportunities. The policy also includes six compulsory protection benefits, dividend and loyalty dividend entitlements, partial withdrawal facilities after five years, and the ability to convert the maturity value into a monthly income stream. Customers are also provided the flexibility to continue optional riders beyond the premium paying term and enhance their investment through top-up premiums.

Commenting on the launch, Lasitha Wimalaratne, Executive Director / Chief Executive Officer of HNB Life, stated, “As we embark on a bold new chapter as HNB Life, the introduction of Privileged Protect reflects our commitment to continuously evolve alongside the changing aspirations of our customers. Today’s customer seeks greater flexibility, stronger protection, and smarter financial planning solutions that align with their lifestyle and long-term goals. This product has been thoughtfully designed to address those expectations while delivering the security and confidence our policyholders value. As we celebrate 25 years of excellence, we remain focused on shaping the future of insurance through innovative solutions that are relevant, accessible, and future-ready.”

Also sharing his thoughts, Dinesh Udawatta, Executive Vice President / Chief Technical Officer stated, “The modern customer is increasingly looking for insurance solutions that go beyond traditional protection. Privileged Protect is an evolved offering built around convenience, flexibility, and long-term value creation. It is designed for individuals who want to secure their future with shorter payment commitments while continuing to enjoy meaningful protection and wealth accumulation benefits. As HNB Life, we are committed to introducing customer-centric innovations that empower Sri Lankans to confidently plan for the future.”

With the launch of Privileged Protect, HNB Life continues to strengthen its portfolio of future-focused insurance solutions, reinforcing its commitment to protecting lives while empowering customers to achieve long-term financial wellbeing in an ever-evolving world. HNB Life PLC is licensed by the IRCSL and all policyholders are advised to read the policy document before concluding a sale to understand benefits, exclusions, terms and conditions.

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Sri Lanka’s Nazri Nizar elected to YPO global board in historic first

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Nazri Nizar

For the first time in the 76-year history of the Young Presidents’ Organisation (YPO), a Sri Lankan has been elected to its global board, with business leader Nazri Nizar securing a position on the governing body of one of the world’s most influential leadership organisations.

The appointment was confirmed at the YPO Annual General Meeting held on 21 May 2026. Nizar will serve as a YPO global board director from 2026 to 2029 and will concurrently serve as chair of the YPO Global Forum Committee.

Founded in 1950, YPO is a global leadership community comprising more than 38,000 chief executives, entrepreneurs and business leaders across 150 countries. Collectively, its members lead organisations generating approximately US$9 trillion in annual revenue, placing YPO among the most influential peer leadership networks in the world.

Unlike traditional business associations, YPO is built around the philosophy that leadership is a lifelong pursuit. Through a combination of executive education, peer learning and confidential leadership forums, the organisation provides a platform for business leaders to learn from one another’s experiences and navigate the personal and professional challenges that accompany leadership. At a time when organisations are navigating unprecedented technological, economic and social change, platforms such as YPO continue to underscore the importance of learning, collaboration and leadership across borders.

Nizar’s election follows years of service within the organisation. He has previously served as chapter chair of the YPO Colombo Integrated Chapter, been a member of the YPO South Asia Regional Board and, most recently, served on the YPO Global Forum Committee. In addition to his responsibilities as a global board director, Nizar will lead the Global Forum Committee, which oversees one of YPO’s most valued and enduring member experiences.

Commenting on the appointment, Nizar said YPO had played a defining role in shaping his leadership journey.

“YPO taught me that leadership is not about having all the answers. It is about continuous learning, trusted relationships and the willingness to grow through the experiences of others,” he said.

Describing the appointment as both humbling and inspiring, Nizar said he hoped the milestone would encourage more Sri Lankan leaders to engage with global platforms, contribute to international conversations and share their experiences with peers around the world.

Nizar currently serves as group managing director of Richardson Holdings, a diversified Sri Lankan enterprise with interests spanning engineering, infrastructure, renewable energy, manufacturing and out-of-home advertising.

His election represents a notable achievement for Sri Lankan business leadership and reflects the increasing contribution of Sri Lankan executives within international leadership networks.

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