ECONOMYNEXT – Sri Lanka’s financial inclusion and stability as well as monetary policy transmission would be improved with better financial literacy, Central Bank Governor Nandalal Weerasinghe said.
Financially literate persons will make better savings and investment decisions, he said.
“They are more likely to understand the impact monetary policy decisions and respond appropriately, contributing to effective policy implementation,” Governor Weerasinghe said at the launch of a road map to boost financial literacy.
The road map has been made in collaboration with related regulators and stakeholders and the United Nations Development Program.
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Financial literacy can also increase public trust in the financial system by increase knowledge of how it works.
A national financial inclusion strategy has also been prepared.
A new central bank has entrusted the Central Bank with maintaining the stability of the financial system as well as increasing financial inclusion.
“By promoting financial literacy, financial consumer will be empowered to safeguard themselves from financial fraud,” Governor Weerasinghe.
With new technology there was also an increase in some types of fraud.
Financial literacy can reduce indebtedness and poverty Governor Weerasinghe said.
Increasing financial literacy which starts from schools will also help the next generation. (Colombo/May22/2024)