COLOMBO – Sri Lanka’s banking sector has assured the public that the country’s financial system remains stable, resilient, and secure despite several recent incidents of financial fraud and cyber-related crimes, stressing that customer deposits and the integrity of the banking system are not under threat.
In a statement issued on behalf of all licensed commercial banks, the Sri Lanka Banks’ Association (SLBA) said the recent incidents were isolated in nature and did not reflect systemic weaknesses within the sector.
The Association acknowledged that the incidents had generated public concern, but said banks were well equipped to manage and mitigate such risks through strong regulatory oversight, institutional capital buffers, and ongoing risk management measures.
“Recent reports of financial fraud and cyber-related incidents have understandably received public attention. Industry leaders and regulators emphasize, however, that the banking sector remains fundamentally strong, resilient, and well equipped to withstand such challenges without compromising its core stability or the security of customer deposits,” SLBA Chairman Sanath Manatunge said.
He noted that while some information circulating on social media was misleading or inaccurate, certain recent incidents, including electronic fund transfer fraud, had raised important concerns regarding digital security.
However, Manatunge stressed that such incidents represented only a very small proportion compared with the substantial institutional capital buffers maintained by banks, adding that any related losses were being absorbed by the institutions themselves without impacting public deposits.
The SLBA also pointed to other cybercrime cases reported in recent months, including phishing-related fraud, saying these were not directly linked to vulnerabilities within the banking system but instead reflected the increasingly sophisticated nature of global digital threats.
“These are isolated incidents and do not reflect systemic weaknesses across the banking industry,” the statement said.
The Association further stated that the Central Bank of Sri Lanka had confirmed that all licensed banks continued to maintain capital adequacy and liquidity ratios well above minimum regulatory requirements.
According to the SLBA, the Central Bank has also reiterated its readiness to provide temporary liquidity support if necessary to ensure uninterrupted financial system stability.
“Sri Lanka’s banking sector collectively manages trillions of rupees in assets, supported by diversified portfolios and robust governance frameworks. This scale, combined with prudent risk management practices, provides a strong foundation for absorbing shocks while maintaining public confidence,” Manatunge said.
The banking industry said it was continuing to strengthen its cybersecurity frameworks through investments in advanced fraud risk management systems, enhanced monitoring mechanisms, and independent forensic audits.
Banks are also expected to carry out in-depth reviews of operational processes to further strengthen integrity and resilience against emerging threats.
The SLBA said customer awareness remained a critical line of defence, with banks intensifying public education campaigns on safe digital practices, including password protection, phishing prevention, and secure use of QR codes and digital payment tools.
The Association noted that cyber fraud was a global challenge affecting banking systems in major economies worldwide, but said Sri Lanka’s banking sector had demonstrated comparable resilience through swift corrective measures and vigilant regulatory supervision.
Reaffirming confidence in the financial system, the SLBA said Sri Lanka’s banks “continue to stand as pillars of stability,” safeguarding customer deposits while supporting the country’s economic progress.
-ENCL
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