Financial Markets Unfiltered

On 22 July 2025, the Central Bank of Sri Lanka (CBSL) announced that it was maintaining its primary policy rate at 7.75%. This implies that the borrowing cost will be maintained. It aims to allow the prices to go up gradually and control growth without straining individuals and the economy. Source - Ada Derana So why did CBSL not cut rates? It does not appear that CBSL is doing anything at a glance. Retaining the rate, however, is not a thoughtless thing to do. The rise in prices (inflation) has been very low. Actually, there was even a time when prices declined. Colombo consumer price index reflected a further easing of deflation. Inflation is now projected to gradually rise and attain the figure of about 5 per cent, which is the target of the Central Bank. This is considered to be a healthy amount, neither too high nor too low. By reducing the interest rates once more, so as to continue with its policy of monetary easing, CBSL could have caused inflation to move at an accelerated ra...

An important part of Sri Lanka's economy is made up of Small and Medium-sized Enterprises (SMEs). They boost local communities, support families, and generate jobs. However, a big challenge that many SMEs have is their inability to obtain the necessary funding. There is restricted access to credit, loans, and contemporary financial technologies, particularly for newly established small business owners. The SME Business Credit Card is a new product that People's Bank and Mastercard have launched to help address this issue. This card was created specifically to satisfy the financial requirements of small business owners. On June 27, 2025, it was introduced at the Gampaha Municipal Council Stadium as part of the World SME Day festivities. The SME Business Credit Card is another form of credit card provided to the owners of small and medium sized businesses that they can avail of helpful financial resources. These are some of the key features: No enrolment fee  The first-year annua...

With an evolving financial scenario, Sri Lanka's banking sector is being led by the Central Bank of Sri Lanka (CBSL) with a firm but flexible fist. CBSL announced on 4th July 2025 that Cargills Bank PLC was to be granted an extension up to 2029 to reach the aimed LKR 20 billion minimum level of capital. The bank currently has LKR 11.89 billion, slightly greater than half the target level. Difference between the current level and the needed minimum level of capital of Cargills Bank                                                                                               In terms of regulation, this is a pragmatic step. Capital adequacy is perhaps the strongest tool in ensuring banking system stability, especially now that sudden...

Imagine a busy supermarket in Sri Lanka. A customer scans a QR code and instantly completes a transaction. What goes on behind the scenes is a truly fascinating story. Financial infrastructure is embedded into our daily lives in a way we cannot imagine. One of the cornerstones of such advancements is financial technology, or ‘Fintech,’ as it is commonly referred to. The technology lies beneath the systems, frameworks, and institutions that keep money moving securely. The word ‘Fintech’ itself gains a lot of buzz in intelligent circles, but are we reaping the benefits properly beyond the hype?           Launch of Fintech Summit, Source: Daily Mail Financial infrastructure is the backbone of an efficient financial system. LankaPay was established to expand these tools and ensure that digital transactions happen with speed and security. The Fintech Forum Sri Lanka, a platform launched by LankaPay, held the Sri Lanka FinTech Summit Launch in June 2025. The CEO ...