{
  "title": "Sri Lanka: Financial System Stability Assessment: Update, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision and Payment Systems",
  "publication": "IMF Staff Country Reports, December 17, 2007",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/sri-lanka-financial-system-stability-assessment-update-including-reports-on-the-observance-21512",
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  "summary": "This paper presents an update to the Financial System Stability Assessment on Sri Lanka. The paper discusses that despite a challenging macroeconomic environment characterized by a high fiscal deficit, inflationary pressures, and a widening current account, near-term risks to the financial system appear manageable. Financial soundness indicators have improved; nonetheless, stress tests suggest that banks remain relatively less resilient to interest rate and liquidity shocks. Moreover, the system faces challenges over the medium term from continued rapid credit growth, rising interest rates, and rigidities in interbank markets.",
  "publishDate": "2007-12-17",
  "series": "IMF Staff Country Reports",
  "sections": [
    {
      "heading": "Summary and overall assessment",
      "content": "- This paper presents an update to the Financial System Stability Assessment on Sri Lanka.\n- Despite a challenging macroeconomic environment characterized by a high fiscal deficit, inflationary pressures, and a widening current account, near-term risks to the financial system appear manageable.\n- Financial soundness indicators have improved.\n- Stress tests suggest that banks remain relatively less resilient to interest rate and liquidity shocks.\n- The system faces challenges over the medium term from continued rapid credit growth, rising interest rates, and rigidities in interbank markets."
    },
    {
      "heading": "Key findings and risks",
      "content": "- Near-term financial system risks: manageable despite macroeconomic challenges.\n- Bank resilience: stress tests indicate relative vulnerability to interest rate shocks and liquidity shocks.\n- Medium-term challenges:\n  - Continued rapid credit growth.\n  - Rising interest rates.\n  - Rigidities in interbank markets."
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subject areas: Banking, Capital adequacy requirements, Commercial banks, Credit, Credit risk, Financial institutions, Financial regulation and supervision, Insurance, Insurance companies, Money, Pensions.\n- Keywords include: Asia and Pacific, bank, bank borrowing, bank exposure, CBSL, central bank, Commercial banks, CR, Credit, credit risk, exchange-earning corporate, exposure to the government, Insurance, Insurance companies, interest rate, ISCR, RTGS security objective, securities.\n\n---\n\n Content in this bundle\n\n- cr07383 - Executive Summary\n  - cr07383 - Executive Summary (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - cr07383 - Executive Summary (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/cr/issues/2016/12/31/sri-lanka-financial-system-stability-assessment-update-including-reports-on-the-observance-21512"
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    "Published: December 17, 2007",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781451823608.002",
    "This paper presents an update to the Financial System Stability Assessment on Sri Lanka.",
    "Despite a challenging macroeconomic environment characterized by a high fiscal deficit, inflationary pressures, and a widening current account, near-term risks to the financial system appear manageable.",
    "Financial soundness indicators have improved.",
    "Stress tests suggest that banks remain relatively less resilient to interest rate and liquidity shocks.",
    "The system faces challenges over the medium term from continued rapid credit growth, rising interest rates, and rigidities in interbank markets.",
    "Near-term financial system risks: manageable despite macroeconomic challenges.",
    "Bank resilience: stress tests indicate relative vulnerability to interest rate shocks and liquidity shocks.",
    "Medium-term challenges:",
    "Subject areas: Banking, Capital adequacy requirements, Commercial banks, Credit, Credit risk, Financial institutions, Financial regulation and supervision, Insurance, Insurance companies, Money, Pensions.",
    "Keywords include: Asia and Pacific, bank, bank borrowing, bank exposure, CBSL, central bank, Commercial banks, CR, Credit, credit risk, exchange-earning corporate, exposure to the government, Insurance, Insurance companies, interest rate, ISCR, RTGS security objective, securities.",
    "**_cr07383 - Executive Summary**"
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