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Ownership
restrictions unhealthy - DFCC CEO
To
seek legal remedy to redress Commercial Bank stake issue
 By
Santhush Fernando
Ownership restrictions currently enforced by the Central
Bank of Sri Lanka (CBSL) is a bottleneck for regional
expansion and liberalisation of the financial sector.
Chief Executive Officer of DFCC Bank, Nihal Fonseka
states that “the formation of larger and stronger
domestic banks assumes a greater importance in the context
of the ongoing negotiations relating to the Comprehensive
Economic Partnership Agreement. (CEPA) with India in
which financial services sector is a key area identified
for liberalization.”
“While easier entry into India is welcome and offer
immense opportunities, a large capital commitment and
staying power will be necessary for any bank to make
a mark in the Indian market. On the other hand, reciprocal
access to the Sri Lankan market, even with a time lag,
will require, banking institutions in Sri Lanka to be
of a larger size to counter added competition that they
will inevitably have to face in the near future.”
he states.
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