The Central Bank has unveiled a strong regulatory strategy aimed at building public trust to support Sri Lanka’s rapid digital economic growth, officials announced at the Sri Lanka Fintech Summit 2025 in Colombo.
A key part of this strategy is a directive introduced this year requiring all financial institutions to promptly report technology-related risks and cyber incidents to the regulator. This measure aligns with the Central Bank’s broader “risk-based” regulatory approach, which seeks to balance innovation with robust security to protect the integrity of the financial system.
Speaking on a panel, Central Bank Governor Dr. P. Nandalal Weerasinghe stressed that trust is the foundation of digital financial adoption. “Our primary role is to identify the risks associated with financial services and provide the regulatory guidelines to mitigate them. Otherwise, there is no trust in the system,” he said.
The new framework rests on three main pillars: establishing minimum standards for payment applications to ensure the safety of mobile payment apps, introducing a comprehensive Technology Risk Management Framework to strengthen banks’ resilience, and mandating the reporting of significant technology failures and cyber breaches starting in 2025. This system allows the Central Bank to monitor real-time risks, share anonymised intelligence, and coordinate an industry-wide response to cyber threats.
Officials highlighted that this trust-focused framework is essential to achieving the government’s target of a US$15 billion digital economy by 2030. With digital transactions projected to surpass Rs. 50 trillion this year, ensuring widespread adoption beyond urban centres will depend on public confidence.
The banking sector has welcomed the Central Bank’s clear guidance. HNB CEO Damith Pallewatte, speaking on behalf of the industry, said banks play a pivotal role as the “end point where we touch the customer.” He emphasised that the sector’s responsibility is to turn government policies and Central Bank regulations into a safe, seamless consumer experience.
“We play a critical role in building trust in the consumer,” Pallewatte noted. “Whatever the frameworks we put in place, they build trust at the end point where the customers start the payments.”
