Sri Lanka Banking & Financial Services Q4 2018
Sri Lanka's financial services sector, which is dominated by the banking sector, continues to develop amidmacroeconomic uncertainty, political instability and a gradual transformation of the regulatory framework. The non-banking sectorremains largely undeveloped, meaning considerable long-term potential for growth, though we expect near-term pressures from achallenging operating climate and stricter regulatory requirements. Overall, the current period of reform should bode well forfinancial stability in the long term, though there remains the risk of growing political interference in the sector.
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