Business

Rupee liquidity in banks ‘different from normal’: Central Bank

Published

4 years ago

2022/06/16

By Sanath Nanayakkare

With the spike in policy interest rates, rupee liquidity in the banks is different from what is normal, Yvette Fernando, deputy governor of the Central Bank said at a webinar hosted by the Centre for Banking Studies of the Central Bank.

“According to the reports we have received, the current rupee liquidity in the banks has not caused any distress to their daily transactions. However, in an increased rate environment, sometimes customers switch banks to get higher rates and some even opt to use their deposits to purchase Treasury Bills that earn them higher yields. This is normal when there’s a significant change in interest rates. You know that banks take deposits from customers and invest these funds in various ways to help the growth of the economy, while assuring security and reward to depositors. However, when such significant changes are made to the exchange rate policy and interest rates, banks feel the impacts of these policy decisions on their investment decisions.”

She made these remarks in response to a question from the audience whether the lifting of the fixed exchange rate regime and eye-popping numbers in interest rates could destabilize the banking system.

Elaborating on this particular concern among the public, she said, “Even before the most recent interest rate hike and flexible exchange rate policy, banks encountered stress due to lack of foreign currency in the past 12-18 months. Their foreign remittances base declined and their foreign inflows dropped after Sri Lanka’s credit ratings were downgraded by international ratings agencies. Under such circumstances, the banks had to make loan repayments. New loans couldn’t be taken and existing loans could not be renewed. Some banks were inconvenienced in inter-bank settlements as their foreign inflows were inadequate. The Bank of Ceylon and People’s Bank that provide substantial funds to finance the import of fuel, LP gas, medicines and other essential commodities also felt a significant impact as a result of these developments. That situation led the two state banks to collaborate with other banks to facilitate the critical shipments where the Central Bank also intervened when necessary.”

“Now, the most recent interest rate hike and exchange rate policy have had an even more significant impact on the banks’ assets and responsibilities. However, the capital and liquidity buffers of the banks are at optimal levels and have helped them to operate resiliently despite the impact on their rupee liquidity.”

The deputy governor went on to say that if the need arises to support the banking system with rupee liquidity, the Central Bank can do so within the regulatory provisions made available to it.

“We have the ability to intervene and provide that facilitation within that lawful framework. We are always prepared to do that. Even the Monetary Board of the Central Bank is aware of this situation,” she said.

“We recently allowed the banks to operate within a new space of facilitated prudential requirements in line with their assets and responsibilities. I believe that within a short period of time, the adjustments in the macroeconomic framework and measures taken by the government and the central bank will help boost foreign reserves and significantly ease these inconveniences. Thus the banks will be able to operate just as in normal conditions. This will take about a month or two to materialize. Of course, to achieve that, confidence in the Sri Lankan economy needs to be restored. A program with the IMF will help restore that confidence which in turn should revive the foreign exchange market, creating a more comfortable situation for banks to operate,” she said.

Meanwhile, Prime Minister Ranil Wickramasinghe said on Tuesday that Sri Lanka doesn’t have any rupee income, and by the end of the year the rupee crisis would be solved with the introduction of taxes.

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Business

DevPro and WCIC come together to accelerate women’s economic empowerment in Sri Lanka

Published

14 hours ago

2026/01/30

Thilina Walpola

DevPro and Women’s Chamber of Industry and Commerce (WCIC) signed a formal partnership on Wednesday, 28th January to collaborate in promoting women’s economic empowerment and inclusion in Sri Lanka.

DevPro builds on 30 years of OXFAMs legacy in Sri Lanka and works towards Inclusive Economic Development leveraging expertise in inclusive and climate-resilient market systems and enterprise development and innovation. DevPro’s work is guided by the core values of gender justice, inclusivity and community-led development. Through its recent projects, DevPro has supported over 270 women-led MSMEs, across agriculture, handloom, and tourism-related value chains in five provinces in Sri Lanka through a mix of interventions combining skills development, enterprise strengthening, market linkages, and gender-sensitive community engagement to improve income, resilience, and economic participation.

WCIC is the first women-only trade chamber in the world, dedicated to empowering women entrepreneurs and women-led MSMEs in Sri Lanka through skills-building, business advisory services, networking etc. Among its many initiatives, WCIC’s flagship annual event, “Prathibhabhisheka” – Women’s Entrepreneurs Awards has empowered many women owned and women-led businesses in Sri Lanka to enhance their business resilience and competitiveness through improved governance processes, financial health, market recognition and global expansion.

Through this partnership, both DevPro and WCIC, will leverage their collective expertise, networks and resources to advance women’s economic empowerment and inclusion through projects, capacity building, research and policy advocacy focused on women entrepreneurship development, innovative business models, sustainability certification and credentials, export readiness and market integration and financial literacy and inclusion.

The MoU was signed by Gayani de Alwis, Chairperson of WCIC and Chamindry Saparamadu, Executive Director of DevPro in the presence of senior members of both teams.

Business

FRELLA launches world class wellness products locally with Baurs & Co.

Published

15 hours ago

2026/01/30

Thilina Walpola

FRELLA partners with the French perfumer Véronique Gabai

FRELLA, Sri Lankan-born and internationally-respected natural beauty and wellness brand, is setting the stage to expand operations by entering the Sri Lankan retail market. As the country’s only dedicated wellness company operating at an international scale, this move marks a new chapter for a brand with a growing global presence that has already earned the trust of luxury hotels and international customers.

For over seven years, FRELLA has emerged as Sri Lanka’s leading wellness brand, serving clients and partners across more than 15 international markets. The brand’s entry into the Sri Lankan retail market marks a significant milestone, allowing local consumers to access globally respected wellness products developed from the island’s own healing traditions. This retail expansion is supported through a strategic partnership with Baurs, a trusted 170-year-old Swedish multinational company, ensuring sophisticated distribution and access aligned with international retail standards.

FRELLA is rooted in Sri Lanka’s ancient healing traditions and inspired by centuries-old Ayurvedic wisdom. All FRELLA products are specially designed as holistic wellness solutions for the body, skin, hair, and soul, and focuses on providing nourishment, balance, and healthy aging through refined, modern wellness systems.

Business

Writer Business Services enters Sri Lanka to partner with institutions to provide information management and payments solutions

Published

15 hours ago

2026/01/30

Thilina Walpola

Writer Corporation, one of India’s leading business groups, announced the launch of its subsidiary, Writer Business Services Pvt. Ltd., and the commencement of its operations in Sri Lanka. The expansion reflects Sri Lanka’s strategic importance in Writer’s regional growth plans and its role in supporting a highly regulated digital and financial services market which is currently undergoing digital transformation.

Sri Lanka’s continued focus on strengthening regulatory frameworks, digital platforms, and financial systems is shaping how institutions across banking, government, and enterprise sectors approach their business operations. There is a clear emphasis on secure, compliant, and resilient information and transaction environments that can scale with regulatory and business needs. Writer’s entry into Sri Lanka aligns with this direction, bringing global experience and a partnership-led approach to the market.

As part of its launch, Writer will establish a secure records and information storage facility in Seeduwa, Colombo. Designed to meet global standards for security, compliance, and disaster resilience, the facility will support banks, financial institutions, government bodies, and large enterprises in managing physical and digital information across its lifecycle.

Alongside information management, Writer brings established expertise in integrated payment services to support the modernization of transaction infrastructure across the banking and financial services sector. Its payments capabilities focus on strengthening availability, transaction continuity, and transparency across critical payment channels that underpin institutional reliability and customer confidence.

Writer’s digital payments offerings in Sri Lanka include end-to-end ATM and self-service terminal outsourcing, integrated channel ownership and managed services, field management applications, payment and reconciliation platforms, and remote monitoring with near real-time reporting. These solutions support financial institutions in improving uptime, strengthening governance, and enhancing operational efficiency across payment networks, in line with the continued evolution of electronic and automated payment systems.

Across information management and payments, Writer operates with an integrated portfolio spanning records and information management, business process outsourcing, cloud and digital services, data privacy, cybersecurity and enterprise payments infrastructure. These capabilities support institutions in addressing evolving regulatory requirements, digitization of legacy environments, and rising operational and cyber risks.

Writer’s local presence enables closer collaboration with clients and on-ground delivery, while supporting the development of Centres of Excellence across cybersecurity operations, SOC and NOC services, AI-led solutions, and payments operations and monitoring.

Writer’s Sri Lanka operations will be built, led, and run by Sri Lankan professionals, reflecting a long-term commitment to local talent growth and development.

Commenting on this development, Satyamohan Yanambaka, CEO, Writer Global Services Pvt. Ltd., assured Writer’s long-term commitment to the country’s digital ambitions. He said, “Writer’s entry into Sri Lanka reflects our belief that digital ambition in regulated environments must be supported by trust, sound governance, and strong execution. As institutions scale digital services, the reliability of information and payment systems, channel operations, and governance frameworks becomes increasingly important to public and institutional confidence. Our experience across information management, digital transformation, and enterprise payments enables us to support secure, large-scale financial ecosystems, with a clear commitment to building and leading these capabilities locally.”

Sri Lanka’s Digital Personal Data Protection framework raises expectations around how personal and sensitive information is secured and governed.