World Bank2012-06-132012-06-132008-01https://hdl.handle.net/10986/7967This Financial Sector Assessment (FSA) is based on the work of the joint World Bank and IMF Financial Sector Assessment Program (FSAP) update team that visited Sri Lanka between June 20 and July 3, 2007. The principal objectives of the FSAP Update were to: (i) assess developments in the financial sector and progress in strengthening financial sector regulation since 2002; and (ii) identify measures that would contribute to consolidation of financial stability and to further development of the financial sector over the next five years. This report describes the main findings of the 2007 FSAP update addressing bank and non bank financial institutions, state bank restructuring, pension funds, insurance, capital markets, supervisory framework, access to finance, and legal and judicial reforms. This report summarizes the recommendations for sustaining financial development.CC BY 3.0 IGOACCOUNTINGACCOUNTING STANDARDSADBAFFILIATESASSET PRICESASSET QUALITYAUDITINGAUTONOMYBANK BORROWINGSBANK DEBTBANK FAILUREBANK RESTRUCTURINGBANKING LEGISLATIONBANKING SECTORBANKING SUPERVISIONBANKING SYSTEMBENCHMARK YIELDBENCHMARK YIELD CURVEBOND ISSUANCEBORROWERCAPITAL ADEQUACYCAPITAL BASECAPITAL MARKETSCASH MANAGEMENTCENTRAL BANKCENTRAL DEPOSITORYCENTRAL DEPOSITORY SYSTEMCOLLATERALCOLLATERAL REQUIREMENTSCOLLECTIVE INVESTMENTCOMMERCIAL BANKSCOMPETITIVE AUCTIONSCONSOLIDATED SUPERVISIONCONSOLIDATIONCORPORATE BONDSCORPORATE DEBTCOST STRUCTURESCREDIT EXPANSIONCREDIT INFORMATIONCREDIT INFORMATION BUREAUCREDIT RISKCREDIT RISK MANAGEMENTCREDIT SCORINGDEBENTURESDEBTDEBT FORGIVENESSDEBT INSTRUMENTSDEBT MARKETDEBT MARKET DEVELOPMENTDEBT RECOVERYDEFAULTSDEMAND DEPOSITSDEPOSITDEPOSITSDISCLOSURE REQUIREMENTSDIVESTMENTDOMESTIC REGULATORSECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSEMPLOYEE BENEFITEQUITIESEXCHANGE COMMISSIONEXPOSUREEXTERNAL AUDITORSFINANCE COMPANIESFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONSFINANCIAL PERFORMANCEFINANCIAL RESTRUCTURINGFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL SYSTEMFINANCIAL SYSTEM STABILITYFISCAL DEFICITSFOREIGN BANKSFOREIGN COMPANIESFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN INVESTORSFRAUDSFUND MANAGEMENTFUND MANAGERSGLOBAL STANDARDSGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT DEFICITSGOVERNMENT FUNDINGGOVERNMENT SECURITIESGOVERNMENT SECURITIES MARKETSHOLDINGHOLDINGSHOUSINGHOUSING LOANHOUSING LOANSHUMAN RESOURCESINCOMEINFLATIONINFORMATION SHARINGINFRASTRUCTURE DEVELOPMENTINSTITUTIONAL FUNDSINSURANCEINSURANCE COMPANIESINSURANCE COMPANYINSURANCE CORPORATIONINSURANCE PREMIUMSINSURERINSURERSINTERBANK MARKETSINTEREST RATEINTEREST RATESINTERNAL AUDITINVESTMENT CLIMATEINVESTMENT PORTFOLIOINVESTMENT PORTFOLIOSINVESTOR BASEINVESTOR DEMANDISSUANCEISSUANCESJUDICIAL REFORMSLAWSLEGAL AUTHORITYLEGAL FRAMEWORKLEGAL IMPEDIMENTSLEGAL REFORMSLEGISLATIONLIQUID BENCHMARKLIQUIDATIONLIQUIDITYLIQUIDITY MANAGEMENTLOANLOAN PORTFOLIOSLONG-TERM GOVERNMENT SECURITIESLONG-TERM INVESTMENTMARK-TO-MARKETMARKET DISCIPLINEMARKET EFFICIENCYMARKET PARTICIPANTSMARKET RISKMARKET SHAREMARKET VALUATIONMICRO ENTERPRISESMICRO FINANCEMICRO FINANCE INSTITUTIONSMICROFINANCEMICROFINANCE INSTITUTIONSMICROFINANCE SECTORMINIMUM CAPITAL REQUIREMENTSMONETARY POLICYMONEY LAUNDERINGMORAL HAZARDNATIONAL DEVELOPMENTNATIONAL SAVINGSNONBANK FINANCIAL INSTITUTIONSNONPERFORMING LOANSOFFSITE SUPERVISIONOWNERSHIP RIGHTSPAYMENTS SYSTEMSPENSIONPENSION FUNDPENSION FUNDSPENSION REFORMPENSIONSPORTFOLIO DIVERSIFICATIONPRIMARY DEALERSPRIMARY MARKETPRIVATE BANKPRIVATE COMMERCIAL BANKSPRIVATE SECTOR DEVELOPMENTPRIVATIZATIONPROFITABILITYPROVIDENT FUNDPROVIDENT FUNDSPRUDENTIAL REGULATIONPRUDENTIAL REGULATIONSPUBLIC-PRIVATE PARTNERSHIPSRATING AGENCIESREAL TIME GROSS SETTLEMENTRECAPITALIZATIONREFORM PROGRAMREGULATORREGULATORY FRAMEWORKREPUTATIONRESERVERESERVE REQUIREMENTSRETAIL INVESTORSRETIREMENTRETURNRETURN ON ASSETSRETURNSRISK MANAGEMENTRISK MANAGEMENT SYSTEMSRISK WEIGHTSSAFETY NETSAVINGS BANKSECONDARY MARKETSECONDARY MARKET LIQUIDITYSECURITIESSECURITIES MARKETSECURITIES MARKETSSETTLEMENTSETTLEMENT SYSTEMSETTLEMENT SYSTEMSSOLVENCYSPECIALIZED BANKSSTATE BANKSTATE BANKSSTOCK EXCHANGESTOCK EXCHANGE LISTINGSUBSIDIARIESSUPERVISORY FRAMEWORKT-BONDT-BONDSTAXTERRORISMTIME DEPOSITSTRANSACTIONTRANSPARENCYTRUST FUNDVALUATIONWorld Bank10.1596/7967