## CBSL Accelerates Financial Sector Consolidation & Resolution Reforms 📈

The Central Bank of Sri Lanka (CBSL) has reaffirmed its commitment to the Master Plan for Consolidation, focusing on systemic stability and long-term sustainability for the banking and non-bank financial sectors. • Strategic Consolidation: Efforts continue to merge banks and finance companies to achieve the scale and balance sheet strength necessary to support large-scale investments and economic growth. • Enhanced Monitoring: CBSL has commenced stricter oversight of finance companies using a revised Phase II assessment framework to improve operational efficiency and risk management. • Resolution Framework: Building on lessons from the 2022 crisis, significant progress was made in 2025 to manage distressed institutions. Full implementation of a robust resolution framework is expected by 2026. • Key Objectives: Improving financial inclusion and technology investment. Safeguarding depositor confidence through orderly resolutions. Aligning Sri Lanka’s financial system with international best practices. _Source: CBSL Annual Policy Address (Provisional Data)_ ---