Page 44 - CPM Sri Lanka-Chartered Manager-Sept. 2021
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THE INSTITUTE OF CHARTERED PROFESSIONAL MANAGERS OF SRI LANKA
SEPTEMBER 2021
Sri Lanka holds competitive advantage in the supervision to an offshore banking environment.
services sector with its pool of skilled labour in ICT, Building capabilities in offshore banking
Finance and Knowledge Services industries. Also, supervision will be key to the success of this
Sri Lanka has the added advantage of location with initiative.
regards to time-zone as well as maritime routes.
Having the best port in the region with an already What are the new trends in banking that have
well-established transit hub, Sri Lanka has a vast emerged in global organisations such as
opportunity to position the country as a ports and yours, with the emergence of the Covid-19
logistics hub. With over 70% of cargo being routed pandemic? Do you think any of these trends
to India through Sri Lanka, there is already an are here for the long run?
opportunity to attract some part of the supply chain
to set up offices, warehouses here. The Port City can With the pandemic, the entire world is going
act as a regional logistics centre for such entities. through a major reset. At Standard Chartered,
we believe that money can be a force for good.
However, Sri Lanka will have to work on uplifting We are taking a stand to support net zero, uplift
the country’s rating and would need a robust the livelihoods of our communities through SME
plan to manage the debt suitability concerns. The financing and support the new entrants who
country also requires a clear path to reduce the are trying to enter the global markets which is
current account deficit by increasing exports and already disrupted. The world is fast changing, and
it requires some stringent reforms to manage the organisations need to adapt to these changes.
fiscal deficit. Failure to adapt to changes in a timely manner
will inevitably drive the organisation to extinction.
Do you envision any opportunities for local banks
at the Port City Colombo? We believe that sustainable finance will play
a vital role in creating a better world in a post-
This is a good opportunity for local banks to set up pandemic environment. As per our research, Sri
an offshore banking unit with fully fledged offshore Lanka has a potential of accessing USD 16Bn
banking capabilities. International Financial Centres worth of funding to green financing through
have taken time to take off. Hence, it’s important to global funds.
be patient during the process. As per the Port City
law, the capital for such businesses should come Does the Port City Colombo Economic
from overseas. Hence, domestic banks might have Commission Act provide an adequate
to work on partnerships to establish such entities. regulatory framework to attract leading
banks and financial service providers to
The Central Bank also has a role to play as the Colombo?
regulator in maintaining financial system stability
through appropriate macro policies, maintaining Sri Lanka requires a detailed framework for
global standards, strengthening supervision, offshore banking which will cover a range of
upgrading the payments & settlements structure, products and services that will be offered in the
improving the governance structure and in Port City. On the regulatory front, we have seen
improving customer protection rules. It also different models.
requires a shift from a traditional domestic banking
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