In collaboration with the Central Bank of Sri Lanka, CFA Society Sri Lanka has launched the Financial Literacy Program. The aim is to develop the financial capabilities of Sri Lankans through a sustainable and cost-effective set of tools.
Sri Lanka has a financial literacy rate of around 35 percent, which is well below the 65 percent financial literacy rate in advanced countries, although print literacy rates are similar. To address this issue, CFA Society Sri Lanka and the Central Bank of Sri Lanka has produced a set of tools and guidebooks to improve financial literacy in the country.
As well as aiming to improve the financial literacy of the general public, the Financial Literacy Program also aims to minimise the risk of the public being deceived by investment schemes offered by untrustworthy and fake financial institutions, such as pyramid schemes. Furthermore, the program will strive to create public awareness about excessive borrowing and borrowing at exorbitant interest rates (as much as 220 percent) from unauthorised lending institutions.
On 5 December 2018, we held an advocacy event to launch two new guidebooks. I have written a book titled ‘Financial Literacy to Achieve Your Financial Wellbeing’, whilst CFA Society Sri Lanka Advocacy Co-Chair, Sidath Kalyanaratne, has written a book titled ‘Entrepreneurship: The Journey of an Entrepreneur’.
At the event, CFA Society Sri Lanka President, Zafar Jeevunjee, CFA, said, “We believe a well-functioning, efficient system depends on the trust of the participants. It also depends on the basic knowledge and the awareness of the participants about the products and services being offered and their relative risks and rewards. We believe we have a responsibility and a role to play in building a stronger and accountable financial industry.”
By producing these guides, we hope to improve financial literacy rates in Sri Lanka so that people can make better, well-informed, choices when it comes to their finances. Both guidebooks are available to download for free.
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