ECONOMYNEXT – Sri Lanka Bank’s Association said it welcomed a budget for 2025, would support its implementation and expected improved governance to reduce the gap between ‘management’ and ‘audited’ accounts.
“We anticipate that a focused approach to strengthen key sectors would result in improving the governance framework and reduce discrepancies between Management and Audited accounts, the usage of personal bank accounts for business transactions…” the SLBA said in a statement.
“These would in turn help control money laundering activities, generate increased revenue on the fiscal front and enable banks to expand credit to these sectors of the economy.”
Some Sri Lankan firms had two sets of accounts, according to those who have studied the matter.
The establishment of a credible Credit Guarantee Institute for the SMEs setting up a development bank through the infrastructure of an existing state bank are positive steps, the SLBA said.
“Increased digitalization of the financial economy would also increase investments from the financial institutions into digital infrastructure to drive online transactions, tighten anti-money laundering procedures, improve surveillance, and control cyber-crime,” the SLBA said.
SLBA said Point-of-Sale (POS) machines at every VAT registered business entity would lead to transparent business transactions in digitized form, reducing the use of physical cash, and that this would result in a greater percentage of cash-flows being captured in the banking channels.
“We also welcome the envisaged national drive towards export orientation that would in turn stabilise the macroeconomy and help expand the capital markets through increased foreign exchange and investment flows into the country.”
The SLBA said it contributed 10 percent of government revenues in 2024. The SLBA represented 30 licensed banks. (Colombo/Feb18/2025)