Despite the continuous improvements we made to the regulatory framework in line with international best practices, non-compliance with Directions, rules and regulations, poor understanding of the regulatory framework, lack of prudent internal controls, absence of prudent risk management and dynamic strategic planning, and submitting unreliable information by some financial institutions have raised doubts in our minds about the corporate governance practices adopted by some companies. We believe consolidation programme will result in financial institutions being more transparent and be well-compliant with regulatory framework in the future. Ladies and gentlemen, in order to address the concerns including the reasons I mentioned above, it was decided collectively by the Ministry of Finance and the Central Bank to strengthen the financial sector through consolidation. This is expected to be achieved by merging the financial institutions to create a sector with strong and dynamic institutions practicing good governance and catering to all sectors of the economy while being resilient to domestic and external shocks. Therefore, financial institutions need to put in place adequate capital and other buffers to prepare the Sri Lankan financial sector to further withstand business cycles without sacrificing investment potential in the future. The move by Sri Lanka for financial sector consolidation at this juncture has been set out after careful consideration and assessment of the costs and benefits that would accrue to the BIS central bankers’ speeches  5  country to achieve its national goal of accomplishing medium-term growth targets.

The FSDP is a comprehensive strategy that is aimed at achieving a financial system that is sound, stable and market-based, that would support efficient resource mobilization necessary for economic diversification and sustainable growth. The weaknesses noted in the financial sector are addressed through a public and private sector partnership. A number of activities have already been undertaken under the FSDP such as the establishment of a Credit Reference Bureau. Similarly policies and the legal and regulatory frameworks have been developed to take into account the fast changing financial environment. These developments have resulted in a considerable increase in the number of banks and other financial service providers in the country. Ladies and Gentlemen, this workshop is therefore timely as it tries to bring together Zambian financial sector players and international financial players who have an interest to see that Zambia takes its rightful place in the world economy. Apart from being a sensitisation platform to the general public, this workshop should diligently explore ways on how entrepreneurs can access venture capital funds in Zambia. Although venture capital organizations in Zambia are not many and evident to the general populace, our expectation is that after this workshop, we shall see the emergence of an interactive and symbiotic alliance between International and Zambia financial institutions. This alliance is expected to provide venture capital funds and financial services that should uplift the well-being of the Zambian people at large.