Strategies for Enhanced Digital Resilience: Insights from the Sri Lankan Banking Sector

Abstract

This study investigates digital resilience in Sri Lankan banks, focusing on practical strategies to address challenges specific to the sector. Digital resilience, the ability to withstand, adapt to, and recover from digital disruptions, is critical in safeguarding financial systems against threats. However, limited technological infrastructure, regulatory ambiguities, and operational constraints hinder comprehensive resilience in emerging markets like Sri Lanka. A qualitative research design, grounded in phenomenology, was employed to explore shared experiences and perceptions of banking professionals. Semi-structured interviews with nine participants from key roles in cybersecurity, risk management, and IT operations provided in-depth insights. Thematic analysis identified two main areas: the current state of digital resilience and barriers to its enhancement. Findings revealed that Sri Lankan banks benefit from robust regulatory frameworks and institutional initiatives. However, human vulnerabilities, reliance on legacy systems, regulatory uncertainties, and vendor non-compliance remain significant obstacles. The study proposes actionable strategies, including establishing a Digital Resilience Community of Practice, adopting regulatory sandboxes for piloting emerging technologies, and blockchain-based solutions for vendor compliance tracking. These approaches aim to enhance sector-wide resilience while addressing systemic challenges. This research contributes to global discourse by emphasizing the need for context-specific strategies in emerging markets. Future studies should validate these findings through larger-scale research and cross-country comparisons to refine and extend their applicability.