Q: What are your expectations of the business environment in the next 12 months or so?
A: We are optimistic about the business environment in the next 12 months. In the first quarter of 2021, the demand for private sector credit improved.

However, this optimism could be dented by the impact of the third wave. While the social impact this time is greater, the country seems to be in a better position to handle the situation with its previous experience.

Key export sectors such as apparel have registered steady recoveries with monthly export proceeds ranging between US$ 950 million and one billion dollars. Worker remittances too have continued to grow.

There will be challenges for banks as the moratoriums granted to businesses ended in March. Banks will now have to support entities’ resurgence. This is an opportunity for businesses to rebuild more efficiently and sustainably, and tap into new areas the pandemic has opened up. 

Q: How is the bank planning for the medium term – i.e. for financial year 2021/22 – given the ‘new normal’ era that is now upon us?
A: National Development Bank’s (NDB) planning process began mid last year amid the pandemic.

The use of technology will define the competitive advantage in the new normal. Unlike our regional neighbours, Sri Lanka has lagged behind in the technology adoption rate but with the pandemic and lockdowns, we saw phenomenal growth in the adoption of mobile payment platforms.

We intend to lead the country’s drive towards a cashless society by keeping up this momentum while providing value added services for clients. Financial year 2021/22 will be crucial for the country and therefore, our strategy is aligned with the growth sectors of the economy while we support the other sectors’ transition as well.

 Q: What is your take of the ongoing vaccination programme and how critical is it to your company’s prospects this year?
A: The vaccination programme has been handled quite efficiently given the limited resources that a country like ours has. It has been better managed in some areas than others but overall, I believe it has been rolled out systematically.

Our experience in conducting this kind of roll out is not new. Barring another lockdown, which will be detrimental to the economy, this is not a critical factor for NDB’s prospects this year.

We’ve taken necessary precautions to safeguard our staff and clients, and I believe the government has this under control. As mentioned before, the depth and breadth of the third wave would determine the impact on the economy.