Srilanka, May 5 -- Some ideas simmer in our national imagination for years, if not for decades, before they gain fruition. A development bank for Sri Lanka has not just been an idea, but was formed, dissolved and re-imagined time and again since Independence.

In this context, the National Budget for 2025 states that the Government is working towards setting up a development bank: "As a first step, the function of a development bank through a new administrative structure will be established through the existing state bank mechanism. The Government will support this task through the National Credit Guarantee Institution (NCGI)."

What has been the history of development banking in Sri Lanka, and what constraints could such an initiative ...