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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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Mattala Wildlife Unit to boost revenue, tourism and investor confidence

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Dignitaries at the MOU signing ceremony.

The launch of a dedicated wildlife unit at Mattala Rajapaksa International Airport is expected to deliver significant economic benefits by improving aviation safety, strengthening eco-tourism and enhancing Sri Lanka’s investment appeal, Wildlife Conservation Department Director General Ranjan Marasinghe said.

Speaking at the signing of a Memorandum of Understanding between the Department of Wildlife Conservation and Airport and Aviation Services (Sri Lanka) Limited, Marasinghe said the initiative links conservation directly with national development and revenue generation.

“This is more than an administrative step—it is a forward-looking initiative that aligns conservation, aviation safety and national development in a single strategic effort,” he said.

He noted that wildlife management at airports is globally recognised as essential for reducing bird strikes and wildlife-related disruptions, which can lead to costly repairs, delays and operational losses.

By proactively managing such risks, the Mattala Wildlife Unit is expected to lower potential costs for airlines and airport operators while improving efficiency and confidence among carriers considering future operations.

Marasinghe said the airport’s proximity to premier tourism destinations such as Yala National Park and Udawalawe National Park, together with marine tourism opportunities including Blue Whale watching, gives Mattala a strong commercial advantage.

“This convergence of aviation and wildlife tourism creates an extraordinary opportunity,” he said, adding that the airport has the potential to become a major gateway for high-value eco-tourism.

Industry observers note that wildlife tourists generally spend more on guided safaris, hotels, transport and local experiences, generating stronger foreign exchange earnings and employment opportunities for surrounding communities.

Marasinghe said integrating environmental standards into airport operations would also improve Sri Lanka’s global image at a time when investors and international travellers increasingly value sustainability.

“By integrating environmental considerations into airport operations, we position Sri Lanka more favourably on the global stage, demonstrating that we are a nation committed to sustainability, responsibility and innovation,” he said.

He expressed hope that the Mattala model would be replicated at other international airports, creating long-term savings, stronger environmental governance and wider economic returns.

The Director General said the Department of Wildlife Conservation remains committed to supporting the national economy through new and meaningful avenues while protecting Sri Lanka’s natural assets.

“Conservation must also contribute to development,” he said, stressing that protecting biodiversity and generating growth can go hand in hand.

By Ifham Nizam

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Aitken Spence Elevators and CINEC usher in a new era for Sri Lanka’s elevator industry

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Aitken Spence Elevators, in collaboration with CINEC Campus, recently held the Certificate Awarding Ceremony for the latest batch of trainees of the Elevator Serviceman Course at the Elevator Training Centre (ETC). The graduates were awarded their NVQ Level 3 certifications, marking a significant milestone in their professional journey within Sri Lanka’s vertical transportation industry.

The certification programme was developed in partnership with the National Apprentice and Industrial Training Authority (NAITA) and the Ministry of Vocational Training & Skills Development, ensuring trainees received industry-recognised qualifications, alongside strong practical competencies. The ceremony was attended by directors of both Aitken Spence and CINEC Campus, as well as staff members, lecturers, and invited guests of the graduating students

Anuka Prashan Pieris was recognised as the Most Outstanding Student of the batch in appreciation of his exceptional performance and commitment throughout the programme. The Elevator Training Centre plays a vital role in addressing the growing demand for skilled elevator service technicians through structured training and hands-on learning. The facility features Sri Lanka’s first Elevator Training Tower, offering trainees practical exposure aligned with both local and international standards.

All graduates of the current batch have already commenced their careers as technicians and supervisors at Aitken Spence Elevators. Their seamless transition into the workforce reflects the programme’s strong emphasis on developing job-ready professionals capable of contributing effectively from day one.

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Sterling Steels wins Merit Award at SLIA Annual Product Awards 2026

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COLOMBO, SRI LANKA– Sterling Steels (Pvt) Ltd, a premier manufacturer of high-quality globally renowned steel roofing & cladding, announced it has been honored with a prestigious Merit Award at the Sri Lanka Institute of Architects (SLIA) Annual Product Awards 2026. The national recognition was awarded in the highly competitive Zinc-Aluminium Coated Profile Steel Sheet category, underscoring the company’s dedication to excellence, innovation, and superior quality in the Sri Lankan construction industry.

The award was presented during a grand ceremony held at the esteemed Nelum Pokuna Theatre, a key event in the nation’s architectural and construction calendar. The SLIA Annual Product Awards are widely regarded as a benchmark for quality and design excellence, with products rigorously evaluated by a panel of distinguished architects and industry experts. Receiving this Merit Award positions Sterling Steels among the top-tier suppliers of building materials in the country.

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