Banking sector thrives amidst general economic hardship in Sri Lanka

There is a sense of confusion and frustration among the public as for how the banking sector is flourishing while they are still grappling with the repercussions of the economic crisis

- BY SANATH NANAYAKKARE

While Sri Lanka grapples with the lingering impacts of its recent economic crisis, a stark contrast emerges: the banking sector is reporting robust earnings and profits, while many citizens continue to face hardships.

The banking industry, often viewed as a bellwether of economic health, has seen a remarkable turnaround, with earnings soaring by 52.9% in the first quarter of 2025 alone. This growth comes amid a broader economic context where the country is slowly recovering from a devastating downturn, leaving many to wonder how banks can thrive while the everyday citizen struggles to make ends meet.