Sri Lankan banks considering collective entry into the Indian financial sector, using the Indo-Lanka CEPA. Sri Lankan banks considering collective entry into the Indian financial sector, using the Indo-Lanka CEPA. “The banks feel the most advantageous way of penetrating the Indian market is by forming a conglomerate of the top four private banks,” said Upali de Silva, Secretary General of the Sri Lanka Bank’s Association, that represents all 22 of Sri Lanka’s licensed commercial banks.
The united front, says the Bank’s Association, will increase the capital base for corporate lending and will allow pooling of expertise, against Indian competition.
“We are thinking of entering the Indian market from Chennai and Mumbai,” said de Silva.
Meanwhile Sri Lankan banks are asking for national treatment from the Indian government under the CEPA and are willing to offer the same to Indian banks.
India’s minimum capital requirement for foreign banks’ US $ 10 million for the first branch, US$ 10 million for the second and US$ 5 million for the third branch – is double the requirement for Indian ba