Aravinda bats for further reduction in lending rates

Aravinda de Silva (third from right) speaks at the Almas Securities Investor Forum. Others (from left): Almas Equities CEO Ifadh Marikar, Lynear Wealth Management Unit Trusts and Head of Equities CEO Asanka Herath, Digital Mobility Solutions (PickMe) Founder and CEO Jiffry Zulfer, Surge Founder Bhanuka Harischandra, and Almas Holdings Group Chairman Imtiaz Buhardeen – Pic by Samantha Perera

• Charges banking sector making enormous profits but really not helping economy to grow
• Insists growth will only come if you create new businesses and new opportunities
• Says key reforms such as labour, energy and Customs must be expedited
• Unless expedited along with other initiatives, SL will lose opportunity to grow quickly
• Identifies logistics, mineral, digitisation and sports as high growth potential sectors with investments; calls for liberalisation of trade
• Says Sri Lanka has potential to grow by 7 or 8%
• Expresses strong belief in Sri Lanka especially to grow within South Asia and globally

By Nisthar Cassim

Cricketer turned investor-cum-entrepreneur Aravinda de Silva last week made a compelling case for a further reduction in lending rates whilst reiterating his strong belief in Sri Lanka’s potential to do better.

“The interest rates need to come down further. Just because the interest rates have been at an all-time low, doesn’t mean that we have to remain at that,” Aravinda argued during his remarks at an investor forum organised by Almas Securities.

“If you look at the last 15 years, everyone is happy putting their money into the bank stock and sitting back, and the banks are happy to put their money into Government securities and sit and wait collecting their revenue. The banking sector has been making enormous profits but really not helping the economy to grow. End of the day, what matters is people need to have excess funds to spend/invest and if the money is not spent, the economy will not grow. Growth will only come if you create new businesses and new opportunities,” he pointed out.

“They (banks) need to support young entrepreneurs because for them to grow and get facilities from a bank has become extremely difficult,” said Aravinda, who referred to his initiatives on the Sri Lanka Opportunity Fund launched recently, aiming at $ 100 million to try and help some of these youngsters to give them a better future. 

Aided by a low interest rate regime and revival in economic sentiments, in 2025, total outstanding private sector borrowings rose by 25.2% to an eight-year high of Rs. 10.2 trillion. As per the Central Bank of Sri Lanka (CBSL), the Average Weighted New Small and Medium Enterprise (SME) Lending Rate in 2025 was around 11% and Average Weighted SME Lending Rate was 12%. The Average Weighted Prime Lending Rate was around 8%.

Aravinda also emphasised the need to expedite key reforms such as labour, energy, and Customs, which have been longstanding.

“If we succeed, then Sri Lanka can achieve a growth of 7% or 8%,” he said. “There are so many other things which the Government needs to act upon very soon and if they don’t, I think they will lose the opportunity and I can’t see this country growing that quickly,” he emphasised during the panel discussion, which also featured Almas Holdings Group Chairman Imtiaz Buhardeen, Digital Mobility Solutions (PickMe) Founder and CEO Jiffry Zulfer, Lynear Wealth Management Unit Trust and Head of Equities CEO Asanka Herath, and Surge Founder Bhanuka Harischandra. It was moderated by Almas Equities CEO Ifadh Marikar.

Aravinda also pointed out that digitalisation will help Sri Lanka and the private sector scale up. He was of the view that protecting certain industries by bringing in higher taxes will not have any significant benefit to the country. “I know you have to protect some of the manufacturers, but I think they have to be able to compete on the world stage. So I think to allow a level playing field is very important,” he added.

Aravinda identified logistics, mineral, digitisation, and sports as high growth potential sectors with investments.

At the Almas Investor Forum, Aravinda also spoke of his entry into business following an illustrious cricketing career. He recalled his father saying “never waste a good opportunity” and his competence in math apart from cricket. He read widely, especially about successful cricketers and investors/entrepreneurs.

“I never wanted to work for anyone and I wanted to be my own boss,” recalled Aravinda who, post-retirement from cricket, began making small investments with his network of international friends. “I decided to set up something of my own and grow that business,” he said, adding that he began distribution of Mahindra vehicles. “All started of course with the relationships I built over the years through cricket. I think that is the gift of cricket to me. I wanted to make sure that I use that to create something bigger for the country and more so for the society.”

People kept asking Aravinda why only focus on Sri Lanka, which some of his friends opined was very small.

Whilst acknowledging that there is so much of opportunity outside, Aravinda said: “I still believe in Sri Lanka and I believe there’s so much of potential and we need to get together and make sure we make that impact to make Sri Lanka a place which can serve the region, at least to start off with, and then to grow globally.” 

“Now, I am seriously looking at growing into the region,” he added.