In particular, Sri Lanka is opening its door to banks that have the capacity for additional investment for infrastructure development, ability to facilitate remittances and bring credit to the SME sector.

Central Bank Governor Ajith Nivard Cabraal said the country welcomed banks which could fulfill services for any or all three of those areas over the next five years.

“Sri Lanka is on a path of infrastructure growth. It will be a plus factor if a bank can finance this,” he said at the CMIB Group Holdings Bhd' first Invest Sri Lanka conference “(Because of) our policy of inclusive growth, it would also be an advantage if the bank has skills to take to the rural sector and provide the necessary credit to make it grow faster,” he added.

Of 26 banks now operating in Sri Lanka, 12 were foreign-owned, Cabraal said.

“When the country wants to double its per capita income and grow its gross domestic product (GDP) from US$60bil to US$100bil, the banking assets will also have to increase in tandem,” he said.

The country aims to hit US$2,700 GDP per capita by year-end, US$4,000 by 2016 and US$6,000 in 10 years.

The Governor said the country recorded a 8.3% GDP growth from 8% last year.

Looking forward, Sri Lanka is poised to maintain a 7% to 8% real GDP growth next year, at par with other intensive emerging markets like China (8.6%) and India (7.9%). Inflation for the country has remained single digit in the past three years.

Meanwhile, CMIB Group Bhd, which has gained foothold in Sri Lanka, is looking to be part of the country's South Asian hub of commerce. The bank, the first international investment bank to have physical presence there, has entered into a joint venture (JV) and shareholders' agreement to set up an investment banking advisory joint venture in Sri Lanka via its indirect wholly-owned subsidiary CMIB Securities International Pte Ltd (CIMBSI).

The JV with Sri Lankan partners Alex Lovell and Reshani Dangalla would be a subsidiary of CIMBSI on its incorporation, with CMIB holding 51% and the partners own the balance.

CIMB group Chief Executive Datuk Seri Nazir Razak chief executive Datuk Seri Nazir said: “It is a recognition of connectivity between Sri Lanka and Asean, particularly Malaysia where we have a large number of clients. CIMB will potentially have an anchor business and grow from there.

“Malaysia is very fortunate to be the largest investor in Sri Lanka. Many of our companies are there (such as) MTD Group, Axiata, Maxis and Shangri-La which have committed to many large new projects.”

Currently, CIMB will be providing corporate advisory and bringing in Asean investors to explore business opportunities in Sri Lanka.

“The momentum is there and a lot of clients are looking at possible direct investments opportunities. We are also soliciting for Sri Lankan corporations to help them raise capital either through equity or debt,” Nazir said.