BANKING SECTOR
Compiled by Yamini Sequeira
FROM CONVERSATION TO ACTION
Nilani Seneviratne moots action for higher female representation in Sri Lanka’s corporate boardrooms
Q: How do you assess the current state of women’s representation in corporate boardrooms?
A: Although the picture is more encouraging than it was several years ago, more needs to be done.
Women hold only 13.4 percent of board seats in Sri Lanka – a figure that remains low when compared to global benchmarks, and even regional peers such as Malaysia, Singapore and the Philippines.
While it is vital to accelerate diversity at board level, appointments must be based on merit rather than tokenism. In some organisations, legacy structures continue to hinder the advancement of women into leadership roles.
Moreover, despite high female literacy rates, women’s workforce participation remains notably lower than that of males, which impacts the leadership pipeline.
Q: What practical steps should boards and regulators take to accelerate gender diversity at the top?
A: Boards and regulators can act as catalysts for change by setting the tone at the top. Introducing voluntary targets or quotas helps create accountability while mandating disclosure on gender representation makes progress measurable and transparent.
Beyond policy, boards must actively foster inclusive cultures by reviewing internal frameworks to accommodate flexible work arrangements, particularly for mid-career women. Unconscious bias in recruitment, promotions and evaluations must also be systematically addressed.
Equally important is the development of robust talent pipelines through coaching, mentoring and sponsorship. Structured accelerator programmes and succession planning that deliberately include female talent ensure sustainability.
Tools such as curated directories of female professionals with board potential, along with closer collaboration with regulators to strengthen gender provisions in corporate governance frameworks, can help move the country from conversation to action.
Q: How do you see emotional intelligence (EI) shaping workplace culture and leadership effectiveness in the banking sector?
A: Emotional Intelligence has become a defining trait of successful leadership, particularly in banking, where trust, relationships and service underpin operations.
Leaders with strong EI demonstrate self-awareness and empathy, enabling them to respond thoughtfully rather than react impulsively in high-pressure situations.
At an organisational level, emotional intelligence drives effective communication, reduces misunderstandings, and builds a culture of respect and engagement.
In a sector often associated with stress and long hours, EI also plays a key role in reducing burnout and strengthening resilience – traits that are essential for building sustainable workplace cultures.
Q: What are the most pressing operational challenges faced by banks today?
A: Operational challenges continue to revolve around balancing modernisation with resource constraints.
Many banks still grapple with outdated legacy systems, which complicates the adoption of cutting-edge technologies. Integration is both costly and resource intensive, limiting the ability to scale digital solutions across all functions.
Cybersecurity has emerged as another major challenge with threats growing more complex, placing pressure on banks to continually upgrade their defences. Simultaneously, customer expectations are rapidly evolving, shaped by global digital first experiences.
Q: How do you view digital transformation reshaping back office operations in the next five years?
A: Back office functions are undergoing a fundamental shift from being cost centres to value creators.
Over the next five years, automation powered by AI and robotic process automation (RPA) will handle repetitive tasks such as reconciliations, compliance checks and routine reporting. However, true digital transformation also requires investing in people.
Upskilling and reskilling initiatives coupled with continuous learning ecosystems will be critical. Inclusive training programmes must ensure that employees at all levels remain relevant and confident about adopting new tools, embedding innovation into the organisation’s DNA.
Q: What lessons can banks learn from global best practices in risk and controls?
A: The global banking sector highlights the importance of a holistic and proactive approach to risk. Clear governance structures, well-defined risk appetite statements and transparent reporting lines are non-negotiable.
Risk identification must evolve from a periodic exercise to a continuous organisation wide practice supported by scenario analysis and stress testing. Controls should be seamlessly embedded into daily operations rather than be treated as afterthoughts with technology leveraged to enhance efficiency.
A strong risk culture – driven by tone at the top, reinforced by regular training and supported by clear communication – ensures that accountability is shared across the organisation rather than siloed within compliance functions.
Q: And what leadership qualities are most critical for future banking executives, in your view?
A: The banking sector operates in an increasingly volatile, uncertain, complex and ambiguous (VUCA) environment, making leadership qualities more critical than ever. Future leaders must demonstrate agility and foresight to anticipate change, as well as adaptability to respond effectively to disruption.
Technical knowledge in areas such as digital transformation, cybersecurity and regulatory compliance must be balanced with people centric skills – for example, emotional intelligence, collaboration and relationship management.
Ethical integrity and accountability remain essential for maintaining trust in an industry built on confidence. Leaders must also embrace continuous learning, innovation and inclusivity, creating diverse teams that produce well-rounded solutions.
The most effective leaders will combine strategic vision with empathy, guiding organisations through transformation while keeping people at the centre.
