The financial literacy rate of Sri Lanka has improved almost by 23
percentage points compared to the rate that was reported in 2014 by
Standard and Poor’s Ratings Services, as per the first-ever nationwide ‘Financial Literacy Survey Sri Lanka – 2021’pulished by the Central Bank of Sri Lanka (CBSL).
The survey found that 57.9 percent of adults are financially literate in Sri Lanka. Further, the findings implied that the level of financial literacy varies across different segments of the population, suggesting the need for targeted policy interventions.
The findings illustrated that levels of financial literacy vary across
segments of the population. It is also noteworthy that there is a significant
difference in the financial literacy levels between men and women, with a gender gap of 5.9 percentage points. Furthermore, men appeared to
have greater financial knowledge and financial behavior scores
across the sample. Given this gender difference in financial literacy,
a special attention of policymakers to identify how financial education could contribute to the financial empowerment of women is merited.
The survey findings further suggest that young adults in Sri Lanka are
more financially literate than the elderly population.
” This is a positive move, as it reveals that the population might be more financially resilient in the future. In addition, people who use digital financial devices or services exhibit significantly higher financial literacy levels, which is quite similar to the survey outcomes of other countries. This also indicates the need to ensure equitable access to digital literacy among different population segments,” it said.
The Regional Development Department of the CBSL, with the assistance of the International Finance Corporation (IFC) – under the IFC-DFAT Women in Work program – conducted the first-ever countrywide Financial Literacy Survey in Sri Lanka, as part of the implementation of the National Financial Inclusion Strategy of Sri Lanka. The key objective of the survey was to assess the level of financial literacy across the population with a view to formulating appropriate policy measures.
n conclusion, the survey reinforced the FIS findings and further revealed
the need to target the policy interventions by designing and conducting
programs in the implementation of NFIS