30 Questions
Which sector dominates the financial system in Sri Lanka, accounting for 58% of the total assets?
Licensed Commercial Banks (LCBs)
Which institutions are regulated by the Central Bank of Sri Lanka according to the text?
Licensed Commercial Banks
What type of financial institution allows the transfer of money between savers and borrowers?
Commercial Banks
Which of the following is NOT mentioned as part of the financial system in Sri Lanka?
Credit Rating Agencies
What type of institution is responsible for managing approved private provident funds in Sri Lanka?
Unit Trust Management Companies
Where can individuals go to invest in Unit Trusts based on the provided information?
Stock Brokers
When was the Central Bank of Sri Lanka established?
1950
Which bank introduced automation to the Sri Lankan banking industry in the late 1980s?
Sampath Bank
What major change occurred in the Sri Lankan banking sector regarding working hours during the late 1980s?
Change from 8-hour, 5 days a week system to 24/7 service
Which feature became more popular in the Sri Lankan banking industry with the growing popularity of modern telecommunication technology?
Telephone banking
What type of modern facility was introduced in the Sri Lankan banking industry allowing customers access to their accounts from any branch?
Automated teller machines (ATMs)
Which bank initiated instant money transfers within cities and access to ATMs in the late 1980s in Sri Lanka?
Sampath Bank
Who regulates and supervises the insurance industry in Sri Lanka?
Regularity Authorities Insurance Board
Which institution is a member of the IBSL and represented by the Deputy Governor for Financial System Stability?
Central Bank
Which institutions are regulated by the Central Bank of Sri Lanka?
Licensed Specialized Banks
Which financial market deals with short-term interest-bearing assets with maturities of less than one year?
Money Market
Which institutions are not regulated by the Central Bank of Sri Lanka?
Stock Broking / Dealing Companies
What is the primary task of the Money Market in the economy?
Facilitate liquidity management
What is the main purpose of the Capital Market?
Facilitate the raising of long-term funds
Which entities are typically the main issuers in the Debt Market?
Government and private companies
What distinguishes the Primary Market from the Secondary Market?
Primary Market is for new securities, while Secondary Market is for existing securities
In which market are Treasury bonds, private debt securities, and equities traded?
Capital Market
Where are stocks and shares of companies typically traded?
Equity Market
What are the main investors in the Capital Market?
Pension and provident funds
Which regulatory authority in Sri Lanka is responsible for licensing and regulating stock exchanges, stockbrokers, and unit trust companies?
Securities Exchange Commission
Under which act does the Central Bank of Sri Lanka regulate and supervise banking institutions in Sri Lanka?
Banking Act No.30 of 1988
Which financial institution in Sri Lanka is regulated under the Finance Business Act No.42 of 2011?
Finance companies
What regulation does the Securities and Exchange Commission oversee in Sri Lanka?
Licensing and regulating stock exchanges
Which financial institution is responsible for the regulation and supervision of primary dealers in government securities in Sri Lanka?
Central Bank of Sri Lanka
Under which act is the regulation and monitoring of finance leasing establishments carried out in Sri Lanka?
Finance Leasing Act No.56 of 2000
Study Notes
- Prof. N. Jayantha Dewasiri is a professor in the Finance Department at Sabaragamuwa University of Sri Lanka.
- The Sri Lankan financial system includes elements such as the Central Bank of Sri Lanka, commercial banks, specialized banks, finance companies, and more.
- The history of banking in Sri Lanka includes the establishment of the Bank of Ceylon in 1939 and the Central Bank of Sri Lanka in 1950.
- The late 1980s saw significant changes in the Sri Lankan banking industry with the introduction of automation by private banking corporations.
- The banking sector in Sri Lanka mainly consists of licensed commercial banks and licensed specialized banks, which account for 58% of the financial system's total assets.
- The financial system in Sri Lanka encompasses regulatory authorities like the Central Bank, Insurance Regulatory Commission, and Securities Exchange Commission.
- Financial markets in Sri Lanka include the credit market, capital market, debt market, and equity market, each serving different purposes in facilitating financial transactions.
Test your knowledge on the components of the financial system, including regulatory authorities, financial institutions, markets, instruments, payment & settlement infrastructures, and legal frameworks. Explore the roles of the Central Bank of Sri Lanka, Insurance Regulatory Commission, Securities Exchange Commission, and other regulatory bodies.
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