COLOMBO (News 1st); Sri Lanka's financial future will be shaped by technology, innovation and new digital solutions, but not at the expense of stability, trust and consumer protection, Central Bank Governor Dr. Nandalal Weerasinghe declared as he addressed the Sri Lanka FinTech Festival 2026 on Tuesday (3).
Delivering a strong message to innovators, financial institutions and technology providers, the Governor said the Central Bank welcomes the opportunities created by the rapidly evolving FinTech sector, but warned that financial stability must remain the foundation upon which all innovation is built.
"As we welcome the possibilities generated by FinTech, I wish to emphasise one fundamental principle: financial stability cannot be compromised and must be preserved at all costs," he said.
Dr. Weerasinghe noted that while financial technology is creating new opportunities for businesses and consumers, it is also introducing a new generation of risks that cannot be ignored. These include cyberattacks, operational disruptions, fraud, data breaches, inadequate consumer disclosures, excessive leverage and the growing concentration of critical services among a limited number of technology providers.
He also warned that the rise of cross-border digital transactions presents fresh regulatory challenges, while certain digital assets can expose consumers to sharp market volatility and potentially facilitate illicit financial activities.
Against that backdrop, the Governor stressed that Sri Lanka must strike a careful balance, encouraging competition and innovation while maintaining strong supervision, effective risk management and robust consumer protection mechanisms.
Despite the challenges, Dr. Weerasinghe made it clear that the Central Bank remains firmly committed to supporting innovation and technological progress within the financial sector.
He said emerging technologies, new financial products, innovative service delivery models and strategic partnerships will continue to reshape the future of financial services, and the Central Bank intends to work closely with innovators to ensure responsible experimentation and effective regulatory coordination.
Highlighting a key step already taken in that direction, he pointed to the Central Bank's FinTech Regulatory Sandbox, which provides a structured and controlled environment for testing eligible financial innovations under appropriate safeguards.
"Our message is clear: we welcome innovation, we encourage competition, and we support progress, but always with stability, trust and consumer protection at the centre," he said.
Dr. Weerasinghe expressed confidence that if policymakers, regulators and innovators can achieve that balance, FinTech has the potential to become a powerful engine of growth for Sri Lanka, expanding financial inclusion, strengthening competitiveness and helping build a more resilient economy for the future.
