Sri Lanka

Sri Lanka’s focus on reforming and liberalizing its economy is bearing fruit, with the country signing new free trade agreements and posting record exports and growth figures. The government is keen to sell down state assets and position the island at the heart of Indian Ocean maritime trade.

Indrajit Coomaraswamy was all but retired when the call came to run Sri Lanka’s central bank. He can’t remember saying yes to the job, but in 18 months, the self-effacing civil servant has given a government on the edge of bankruptcy a new lease of life.

Few outside Sri Lanka would equate the island with Islamic banking, but the sector is growing fast and pulling in hitherto unbanked customers.

Thanks to new capital and accounting rules, higher costs and increased competition, the island’s cosy banking sector is heading for a long overdue shake-up.

Three foreign lenders stand out on this teardrop-shaped island: HSBC, Standard Chartered and Citi. The latter two have solid and long-standing onshore operations, but neither can compete with the strength of HSBC, which first opened its doors in Sri Lanka way back in 1892.

Most banks in Sri Lanka see lending to small and medium-sized enterprises as vital to their future – and rightly so. But no one beats Hatton National Bank in terms of its exposure and commitment to the sector.

Some banks see corporate and social responsibility as an afterthought. Commercial Bank of Ceylon is genuinely committed to the concept, having set up a trust back in 2004 that generates measurable and sustainable social dividends for those parts of society that need it most.

Demand for premium banking services is mounting in Sri Lanka, one of the emerging world’s fastest-growing economies. Most banks offer some sort of premium product, but no one does it better than Commercial Bank of Ceylon.

Asiamoney met every big lender in Sri Lanka in February, and each one discussed at great length its digital banking credentials. Most Sri Lankan lenders now possess a pretty credible online banking platform, but Hatton National Bank garners not just the support of its clientele for its offering, but also the respect of its peers.