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Financial Inclusion, Regulation, and Education in Sri Lanka

Author

Listed:
  • Saman Kelegama

    (Asian Development Bank Institute)

  • Ganga Tilakaratna

    (Asian Development Bank Institute)

Abstract

Sri Lanka has achieved a high level of financial inclusion compared to other South Asian countries. Its financial sector comprises a wide range of financial institutions providing financial services such as loans, savings, pawning, leasing and finance, and remittance and money transfer facilities. There is also evidence that a larger share of households in Sri Lanka accesses multiple financial institutions for their credit and savings needs. However, the use of insurance services, ATM facilities, e-payments, and mobile banking, is relatively low. Financial education is ad hoc and lags behind financial innovation and new products. The information technology (IT) literacy rate is only 35% in Sri Lanka, and with the growing IT–finance nexus, financial awareness and education have become all the more important. Strengthening the regulatory framework governing the microfinance sector and client protection is also crucial for improving financial inclusion in Sri Lanka. Much scope remains to improve financial inclusion, particularly related to cost and quality of financial services provided, and the sustainability of financial institutions.

Suggested Citation

  • Saman Kelegama & Ganga Tilakaratna, 2014. "Financial Inclusion, Regulation, and Education in Sri Lanka," ADBI Working Papers 504, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0504
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    References listed on IDEAS

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    1. repec:wbk:wbpubs:12253 is not listed on IDEAS
    2. repec:wbk:wbpubs:12255 is not listed on IDEAS
    3. World Bank, 2012. "The Little Data Book 2012," World Bank Publications - Books, The World Bank Group, number 12254, October.
    4. World Bank, 2012. "The Little Data Book on Financial Inclusion 2012," World Bank Publications - Books, The World Bank Group, number 12252, October.
    5. Carpena, Fenella & Cole, Shawn & Shapiro, Jeremy & Zia, Bilal, 2011. "Unpacking the causal chain of financial literacy," Policy Research Working Paper Series 5798, The World Bank.
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    Citations

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    Cited by:

    1. Mukta Mani, 2016. "Financial Inclusion in South Asia—Relative Standing, Challenges and Initiatives," South Asian Survey, , vol. 23(2), pages 158-179, September.
    2. Naoyuki Yoshino & Peter J. Morgan, 2016. "Overview of Financial Inclusion, Regulation, and Education," ADBI Working Papers 591, Asian Development Bank Institute.
    3. Susanta Kumar SETHY & Phanindra GOYARI, 2022. "Measuring financial inclusion and its present status in South Asian countries. Evidence from a multidimensional Financial Inclusion Index," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(632), A), pages 131-150, Autumn.
    4. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West (ed.), 2018. "Achieving the Sustainable Development Goals in South Asia: Key Policy Priorities and Implementation Challenges," SSWA Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office, number brr5, May.

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    Keywords

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    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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