COLOMBO: Sri Lanka's banking sector remains stable and customer deposits are secure despite recent isolated incidents of financial fraud and cyber-related activity, the Sri Lanka Banks' Association said Tuesday (May 26).
In a statement, the association said the incidents did not pose a threat to the safety of customer deposits or the integrity of the wider financial system.
It said losses linked to such cases were being absorbed by the relevant institutions and not by public deposits.
"Recent reports of financial fraud and cyber-related incidents have understandably received public attention," said Sanath Manatunge, chairman of the association.
However, 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, he added.
Manatunge said other cybercrime cases reported in recent months, including phishing-related fraud, were not directly connected to the banking industry and did not indicate vulnerabilities in the banking system.
Rather, they reflected the increasingly sophisticated nature of digital threats faced by financial systems globally.
The association said the Central Bank of Sri Lanka had confirmed that all licensed banks continued to maintain capital adequacy and liquidity ratios above minimum regulatory requirements.
It said the regulator had also reiterated its readiness to provide temporary liquidity support if required.
"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 association said banks were strengthening cybersecurity frameworks through investments in advanced fraud risk management systems, stricter monitoring protocols and independent forensic audits.
It added that banks were also reviewing operational processes to improve integrity and resilience. - Xinhua
