Local banks are rapidly adopting artificial intelligence (AI) and digital technologies to boost efficiency, expand financial inclusion, and promote sustainable finance, the Central Bank of Sri Lanka (CBSL) said.
CBSL Governor Dr. Nandalal Weerasinghe described AI as a “strategic imperative” for the financial sector, noting that it is reshaping banking operations and customer engagement.
He highlighted that AI improves accuracy, reduces costs, and accelerates service delivery, while advanced machine learning models enable real-time fraud detection, predictive credit scoring, and compliance monitoring. AI also allows for hyper-personalisation, delivering tailored financial solutions that enhance customer trust.
Speaking at the CMA Sri Lanka Silver Jubilee International Management Accounting Conference in Colombo, Dr. Weerasinghe said AI-powered automation is streamlining loan applications, compliance reporting, and other back-end processes, eliminating manual errors and freeing human capital for strategic tasks and customer relationship building.
He stressed AI’s broader social impact, particularly in combating financial crime. “AI can analyse billions of transactions in real time, detecting anomalies with unmatched accuracy. This strengthens security and protects the integrity of the financial system,” he said.
AI is also enabling financial access for underserved populations by using alternative data such as mobile usage and utility payments to assess creditworthiness. Digital platforms, chatbots, and virtual assistants are making banking available 24/7, bridging geographical and physical barriers.
On sustainability, Dr. Weerasinghe noted that AI helps evaluate Environmental, Social, and Governance (ESG) metrics, channeling capital toward green investments and climate-resilient projects. It enables better tracking and reporting of green initiatives to align with commitments.
However, he cautioned that digital transformation must be guided by ethics, transparency, and strong governance, while ensuring no one is left behind. Continuous workforce upskilling and fair, non-discriminatory AI models are essential, he said.
“The future of banking is not just about moving money, but about moving society forward. AI can create a financial system that is not only strong and profitable, but also inclusive and a force for positive change,” the Governor concluded.
