CB launches nationwide survey to bolster confidence in Deposit Insurance Scheme

The Central Bank of Sri Lanka (CBSL) has announced a nationwide public awareness survey on Sri Lanka Deposit Insurance Scheme (SLDIS), a critical move aimed at assessing and strengthening public confidence in the nation’s financial safety net. 

The survey will run from September 2025 to November 2025.

The initiative is a key component of the broader Financial Sector Safety Net Strengthening Project, an undertaking financed by the International Development Association (IDA) of the World Bank. The project, backed by a US$ 150 million credit from the IDA, is designed to enhance the financial and institutional capacity of the SLDIS amidst Sri Lanka’s ongoing economic challenges.

The survey will be conducted by the external firm M/S Kantar Lanka (Pvt) Ltd on behalf of the CBSL’s Deposit Insurance and Resolution Department. The CBSL has assured the public that all information collected will be used solely for the survey’s purposes and will remain confidential.

A recent World Bank assessment identified the SLDIS as “one of the weakest pillars of the financial sector safety net,” noting that its current fund size is inadequate to protect against existing vulnerabilities.

The overarching goal of the World Bank-supported project is to address these weaknesses directly. By recapitalizing the SLDIS and improving its institutional capacity, the project aims to “bolster the confidence of retail depositors” and ensure the scheme can effectively handle potential failures of banks and licensed finance companies. The project is particularly focused on protecting the savings of smaller depositors, including women and rural populations, thereby promoting financial inclusion.

The survey represents a foundational step in a larger reform agenda. According to the World Bank project documents, a robust public communication strategy is essential to mitigate risks associated with a “lack of understanding of impacts” among citizens. By first gauging the current level of public awareness, the CBSL can better tailor its communication and outreach efforts as it implements significant upgrades to the deposit insurance and bank resolution framework.

The project’s success is expected to be measured by tangible improvements,such as doubling the SLDIS funding ratio and reducing the time required for depositor reimbursements in the event of a bank failure.