Postal Finance

Aug 9, 2006 (LBO) – Sri Lanka’s postal department is looking to provide agency financial services to boost revenue and reduce its operating deficit. It has a long association with the state-owned National Savings Bank and is used to dealing with savings accounts.

“We feel that the post office is the ideal location in the rural sector to play a vital role as the hub for financial services,” says Sri Lanka’s Post Master General Sherwin Senadheera.

“At the moment we are considering several proposals from private and public banks.”

Senadheera says privately owned Hatton National Bank and Sampath Bank has already submitted proposals to use the post office network.

Government owned State Mortgage and Investment Bank, a housing lender has also submitted a proposal to take mortgage lending to rural areas.

Sri Lanka Post had also talked with DFCC and NDB – two quoted development banks which are transforming themselves into commercial banks – but lacks a branch network.

Senadheera says his department has struck a deal with the international bank, HSBC to have credit card promotions through 46 ‘supra