Banking in Sri Lanka1 min read

“A bank is a place that will lend you money if you can prove that you don’t need it.” – Bob Hope

Banking in Sri Lanka is lending to a person only if it results in that person being worse off.

I recently got rejected for a loan, for the purchase of a government security, and for the collateralizing of my equity/debt. These are things that banks exist to do.

I was rejected for a loan and I quote because arranging a loan as an individual for liquidity purposes/increase OD facility is not a proper purpose for a loan. I didn’t want it immediately and arranging for a loan as a precautionary measure is not allowed.

I was rejected from purchasing a government security in my opinion because I did not want to hold a repurchase agreement but rather hold thesecurity itself.

I was rejected from collateralizing my equity/debt not because the bank wanted to separate its investment banking from its other operations but rather because my portfolio was too small.

Other than giving them a low cost of capital (which they then pass on to the already wealthy) what can I, a normal person, do with a bank?

Is it utopian to think banks provide liquidity and savings?

Dinesh Anthony Perera

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