CFA Society Sri Lanka, Mr. Ravi Abeysuriya, CFA, Author of
the Financial Literacy book and Director of CFA Society Sri Lanka, Mr. Aruna
Alwis, CEO of CFA Society Sri Lanka, Mr. Victor Navaranjan Antonypillai, Acting
Country Manager, International Finance Corporation (IFC) Sri Lanka and
Maldives, Ms. Thusitha Molligoda, Senior Investment Officer, Asian Development Bank,
Mr. Murtaza Esufally, Chairman, Hemas Holdings PLC, Mr. Kapila Ariyaratne, CEO,
Seylan Bank PLC, Mr. Dilshan Rodrigo, COO, Hatton National Bank PLC, Mr.
Dilshan Wirasekara, Chairman, CSE, Mr.
Rajeeva Bandaranaike, CEO, CSE and individuals from state and non-state
universities, the senior management of the CSE and members from CFA Society Sri
Lanka.
Welcoming
the invitees to the ceremony, CSE Chairman Mr. Dilshan Wirasekera said, “Though
Sri Lanka has a long tradition of having a high literacy rate of over 92%,
financial literacy is lower at 58%, an issue that needs to be addressed
carefully.”
“The
country’s investments should be channeled to the sectors of the economy which
really need it. Investors need to be aware of the products and services that
capital markets and financial markets offer. And CSE is very proud to champion
this initiative along with the SEC, IFC, CBSL, CFA Society Sri Lanka to further
discourse. As part of the CSE’s role, we
have been active in conducting Investor Forums Island wide. We already
conducted two Forums in Kandy and Galle this year,” he added.
CFA
Society Sri Lanka Vice President, Mr. Aruna Perera, appreciated the initiative
taken by Mr. Abeysuriya to launch the financial literacy publication in all
three languages, written in simple language that everyone could understand,
defined financial literacy as a body of knowledge which involves economics,
business mathematics, logical skills, and the ability to apply those skills in
a setting which requires an individual to make finance related decisions.Mr.
Perera also emphasized the fact that personal financial management is important
for everyone as an individual, a family, a corporate, society, etc.
“Key
issue that we face when making financial decisions is greed: greed to make
money quickly using short-term methods. If you are financially literate, you
may think of not just short-term returns but also long-term returns. You may
also look at the risks involved in that investment,” added Mr. Perera.
Furthermore,
while congratulating Mr. Ravi Abeysuriya for coming up with the publication on
a topical subject, Mrs. K.M.A.N.
Daulagala, CBSL Deputy Governor, presented the projects carried out by the
CBSL over a long period of time to create awareness on financial education.
According
to Mrs. Daulagala, in March 2021, the CBSL launched the first ever National
Financial Inclusion Strategy (NFIS), and in 2018, a Financial Inclusion Survey
was conducted.
She
added, “The survey defined financial literacy as a combination of financial
knowledge, financial attitudes, and financial behavior necessary to make
informed financial decisions. The results of the survey revealed that financial
literacy is a key impediment to financial inclusion in Sri Lanka. Therefore,
financial literacy and capacity building was identified as one of the four key
pillars of NFIS.”
Further
revealing the key findings of the survey, she stated that almost 58 % are financially
literate in Sri Lanka and which is an improvement from 35% in 2014. “The survey
assessed the level of understanding in four key concepts, and risk
diversification is the least familiar among the participants.”
“Financial
literacy also varies based on the different segments of the population. Males
accounted for 61%, whereas females accounted for 55 %. It was also revealed
that financial literacy among urban residents is higher than of rural
residents. Considering the age level, people above 60 showed a significantly low
rate in financial knowledge and financial behavior, whereas young adults in Sri
Lanka showed a higher rate in financial literacy and this could be considered as
a positive aspect.”
She
also mentioned that more than half of the Sri Lankans showed a positive
attitude towards the safety and efficiency of digital payment methods. So, in
view of the above findings, there is a target policy intervention on financial
education, awareness creation and capacity building to appropriate segments of
the population and also to facilitate digital financial literacy.
Also
addressing the gathering Mr. Chinthaka Mendis, Director General, SEC, noted
SEC’s Capital Market Education Division has taken many steps in improving financial
education among Sri Lankans. “From next year onwards, capital market content
will be a part of the school curriculum beginning from grade 6. It has been
included in the Entrepreneurship and Financial Literacy subjects, which could
be considered a major step forward when educating our future generations.”
Mr.
Mendis emphasized that relatively low financial literacy in the country has
adversely impacted the economy. Thus, it is necessary to put more effort in
improving financial literacy in the country.
Mr.
Mendis also revealed that, as a step forward to introduce new products to the
market, they would allow local companies to raise capital funds in foreign
currencies.
The
Financial Literacy Publication, which was launched at the bell-ringing ceremony,
includes all aspects of financial management, including ways to achieve
financial independence & wealth, personal financial planning, how to borrow
smart, managing finances, investing, wealth management and how to plan for
retirement.
Commenting
on the publication, the author Mr. Abeysuriya, CFA highlighted the fact that being
financially literate clearly benefits individuals, households, corporates, and
the country since better-informed decisions will be made by everyone.
Prioritize the needs more efficiently, increase capital productivity and borrow
money with a clear understanding that the borrowed funds must generate enough
income to pay the interest and repay the borrowed money even under a stressed
scenario.
He
also made a request to all the companies to improve financial literacy of the
adult populations in Sri Lanka as a part of their CSR projects.
