Compliance takes centre stage as pillar of trust in modern finance

THE Central Bank of Sri Lanka (CBSL) this week outlined a renewed vision for financial sector compliance, urging institutions to move beyond checkbox regulation and embrace compliance as a cornerstone of ethical leadership, institutional resilience, and public trust.

- BY JANANI KANDARAMAGE

THE Central Bank of Sri Lanka (CBSL) this week outlined a renewed vision for financial sector compliance, urging institutions to move beyond checkbox regulation and embrace compliance as a cornerstone of ethical leadership, institutional resilience, and public trust.

Speaking at the Compliance Forum of the Finance Houses Association of Sri Lanka (FHA), CBSL Governor Dr. Nandalal Weerasinghe highlighted the growing complexity of financial operations.

He noted that compliance is no longer about avoiding penalties or fulfilling minimum requirements, and must be viewed as a mechanism that strengthens public trust and institutional integrity in the long term.

"Compliance today is not just about regulation-it is about leadership, culture, and values," he remarked, adding that modern financial institutions should prioritise ethics above obligation.

Acknowledging the growing dominance of digital finance and evolving global standards, the CBSL Governor stressed that compliance officers now serve as essential advisers to senior management and boards. He said these officers must not only monitor risk but anticipate it, guiding institutions through complex regulatory terrain with agility and foresight.