Financial education, responsible organisations and public trust are essential to building a more secure society in Sri Lanka
By Dr Manoj Jinadasa
Financial education is often presented as a way of teaching people how to save, borrow responsibly, invest and manage their personal budgets. These skills are undoubtedly important. Yet an equally important question remains: can people achieve financial security simply by knowing how to manage money when their incomes are insufficient, employment is uncertain and the cost of everyday life continues to place pressure on households?
This question invites us to reconsider the meaning of financial literacy. It is not enough to equip individuals with financial knowledge while overlooking the economic, institutional and social conditions that determine whether they can apply that knowledge in practice. Financial wellbeing must therefore be understood as a broader social concern involving employers, financial institutions, policymakers, educational organisations and communication professionals.
These issues will be brought into focus at the Financial Literacy Programme was held on 1 November 2026, from 9.00 a.m. to 1.00 p.m., at the Faculty of Social Sciences Auditorium, University of Kelaniya. Organised by the Department of Mass Communication in collaboration with the Central Bank of Sri Lanka and the Financial Literacy Centre of the University of Kelaniya, the programme featured Central Bank Governor Dr Nandalal Weerasinghe. Conducted as a project by the ninth batch of the Diploma in Public Relations, the programme provided an opportunity to consider the relationship between financial knowledge, institutional responsibility and public confidence.
The economy must be understood through people’s lives
Economic recovery is generally discussed through indicators such as gross domestic product, inflation, foreign exchange reserves and exchange-rate movements. These indicators are necessary for understanding national economic performance. However, they do not always reveal how economic changes are experienced by ordinary households.
According to the Central Bank of Sri Lanka’s Annual Economic Review 2025, economic growth in 2025 was estimated at 5 per cent. Although this represents an important economic indicator, the broader question is how such recovery translates into improved living conditions across different sections of society.
For households, economic conditions are experienced through the cost of food, medicine, education, transport, housing and loan repayments. A family may understand the importance of saving but find it difficult to put money aside when most of its income is required for essential expenses. Similarly, an individual may understand the risks of borrowing but still depend on credit to meet immediate household needs.
The World Bank has also drawn attention to the continuing challenges surrounding household welfare and poverty in Sri Lanka. These realities demonstrate why economic recovery should be assessed not only through national statistics but also through the everyday experiences of people.
Financial education must acknowledge these differences. Advising individuals to save more or spend less without considering their actual income and living conditions can unintentionally place the responsibility for structural economic difficulties entirely on individuals.
A more balanced approach recognises that financial security is shaped by personal decisions as well as employment conditions, public policy, access to financial services and the wider economic environment.
Financial knowledge does not automatically produce financial security
There is an important distinction between financial literacy and financial wellbeing.
Financial literacy refers to the knowledge and skills required to understand financial matters, including savings, interest rates, borrowing, insurance, investment and financial risks. Financial wellbeing, however, concerns the ability to use available resources to meet present obligations, respond to unexpected expenses, pursue future goals and maintain a reasonable degree of control over one’s financial circumstances.
Consider two employees who possess similar levels of financial knowledge. One receives an adequate salary, has a secure position and can plan for professional advancement. The other receives insufficient remuneration, experiences employment uncertainty and has limited opportunities for career development. Although both may understand budgeting and saving, their opportunities to achieve financial security are considerably different.
This illustrates why financial education cannot be treated as a complete solution to financial insecurity. It should instead be connected with decent employment, fair remuneration, social protection and opportunities for economic participation.
For young people, financial education should extend beyond conventional lessons on saving and borrowing. It should include practical knowledge of employment contracts, digital transactions, online financial fraud, responsible credit use, budgeting and the long-term consequences of financial commitments.
The objective should be to develop people who can make informed financial decisions while recognising the social and economic circumstances within which those decisions are made.
The workplace as a foundation of financial wellbeing
One of the most influential environments shaping financial wellbeing is the workplace. Employees depend on organisations not only for income but also for professional recognition, social interaction, career development and a sense of security.
Corporate psychology provides a useful perspective for understanding how leadership, organisational culture, fairness and interpersonal relationships influence employee experiences.
An organisation may provide competitive salaries but still create an unhealthy working environment through excessive workloads, disrespectful treatment, arbitrary management decisions or unequal opportunities. Conversely, organisations that promote fair procedures, transparent communication, supportive leadership and professional development can strengthen employee confidence and commitment.
It is important, however, not to confuse respectful communication with financial fairness. Positive workplace relationships cannot replace adequate salaries or reasonable employment conditions. Both material security and human dignity are necessary.
Employees should understand how their salaries, allowances, promotions and benefits are determined. They should also have appropriate opportunities to raise concerns and question decisions without fear of unfair consequences.
When organisational communication is limited to instructions and announcements, employees may feel excluded from decisions that directly affect their working lives. Transparent communication and meaningful consultation can help establish a stronger relationship between management and employees.
Employee wellbeing should consequently be regarded as an essential dimension of organisational sustainability rather than an additional welfare activity or a promotional slogan.
Reconsidering the role of public relations
The relationship between financial wellbeing and organisational behaviour brings public relations into an important discussion.
Public relations is sometimes narrowly understood as publicity, media relations, event management or the protection of corporate image. These functions have their place, but the professional responsibilities of public relations extend much further. At its core, public relations concerns the development and maintenance of relationships between organisations and the individuals and groups affected by their decisions.
For example, a bank may communicate its commitment to financial inclusion through an extensive promotional campaign. Yet public confidence depends on whether customers can understand its loan conditions, whether fees are transparent and whether complaints are handled fairly.
Likewise, a company may describe itself as an employee-friendly organisation. Its actual reputation, however, depends on its employment practices, treatment of staff and willingness to address workplace concerns.
This distinction is particularly significant in the digital communication environment. Employees and consumers can share their experiences through social media, creating public conversations that may challenge official corporate messages. Organisations can no longer assume that carefully designed communication will automatically produce public confidence.
A credible organisation must be prepared to listen, acknowledge mistakes, explain decisions and demonstrate corrective action. Public relations therefore needs to move beyond the management of appearances towards responsible relationship management.
Institutional trust is not produced simply by what an organisation says. It develops through the consistency between its communication, decisions and actual behaviour.
Towards Human-Centred Financial Public Relations
The connections between financial knowledge, employee wellbeing, institutional accountability and public trust suggest the need for a broader approach to financial communication.
In this context, I propose Human-Centred Financial Public Relations (HCFPR) as a conceptual framework for examining how financial communication can contribute to institutional responsibility and human wellbeing.
The framework is based on five interconnected principles.
First, financial information should be communicated in language that people can understand. Technical information about interest rates, loan conditions, investment risks and financial obligations should not remain inaccessible to ordinary customers and citizens.
Second, institutional decisions should be fair, transparent and accountable. Organisations must be prepared to explain the reasoning behind decisions that affect employees, customers and other stakeholders.
Third, employee wellbeing should be recognised as a central organisational responsibility. Fair remuneration, respectful treatment, professional development and secure working conditions contribute to the relationship between financial stability and human dignity.
Fourth, stakeholders should have meaningful opportunities to participate in institutional communication and decision-making processes. Listening to employees, customers and communities should not be treated as a symbolic exercise.
Fifth, organisations must recognise the wider social and economic conditions that influence financial security. Financial decisions cannot be understood independently of household circumstances, employment opportunities and social inequalities.
Under this approach, communication is not merely a means of persuading people to accept institutional decisions. It should enable them to understand those decisions, identify potential risks, raise questions and participate meaningfully in institutional relationships.
For example, financial institutions should explain not only the benefits of a loan but also its repayment conditions, additional charges and potential risks. Employers should communicate remuneration policies and organisational changes clearly. Public institutions should explain financial policies in accessible language so that citizens can understand their practical implications.
HCFPR is a proposed conceptual framework that requires further academic examination and practical evaluation. Its central contribution is to place human consequences, rather than institutional image alone, at the centre of financial communication.
Financial pressures and the challenge of everyday decision-making
Exchange-rate movements and changes in international markets are often discussed as technical economic matters. However, their consequences can reach households through the prices of imported goods, production costs and the wider cost of living.
The Central Bank’s 2025 economic review recorded a depreciation of the Sri Lankan rupee against the US dollar during that year. The effect of exchange-rate changes on consumers depends on several factors, including international prices, taxation, supply chains and the responses of businesses.
Nevertheless, when essential expenses increase while household income remains relatively unchanged, people may have to postpone important purchases, reduce discretionary spending or borrow to meet immediate needs.
This is why economic communication should be accurate, accessible and responsible. People need information that helps them understand economic developments without unnecessary alarm or misleading reassurance.
Employers and financial institutions also have a responsibility to recognise how wider economic pressures influence the lives of their employees and customers. Where possible, practical financial guidance, transparent policies and fair institutional practices can help people make more informed decisions.
Human wellbeing cannot be reduced to income
Financial security is a necessary condition for a dignified life, but it is not the only condition. Human wellbeing also involves relationships, social belonging, meaningful work, personal dignity and the freedom to make decisions about one’s future.
In Sri Lanka, family relationships, community support and cultural participation can contribute significantly to people’s sense of belonging and wellbeing. However, social expectations and family responsibilities may also create financial pressures. A realistic understanding of wellbeing must recognise both dimensions.
Young people, in particular, face growing pressures to measure success through consumption, expensive possessions and lifestyles promoted through digital media. These expectations can encourage spending beyond one’s financial capacity and the use of unnecessary credit to maintain a particular social image.
Financial education should therefore help young people distinguish between essential needs, social expectations and long-term personal goals. It should encourage responsible financial decisions without defining human success exclusively through income or material possessions.
A society’s progress should ultimately be judged by whether people have the resources and opportunities to live meaningful, secure and dignified lives.
Building a responsible financial culture
Developing a financially literate population requires coordinated action across several sectors.
Universities and educational institutions should integrate practical financial learning into their programmes, enabling students to understand budgeting, borrowing, digital payments and financial risks through everyday examples. Employers should strengthen fair remuneration policies, workplace transparency and opportunities for professional development. Financial institutions should make their products understandable and ensure that customers can obtain clear answers to their questions.
Government institutions have an important role in improving access to reliable financial information and explaining economic policies in ways that ordinary citizens can understand. Media organisations should also contribute by presenting economic developments accurately and connecting national indicators with their effects on household wellbeing.
Public relations education must respond to these changing responsibilities. Future communication professionals need an understanding of financial communication, organisational psychology, ethical leadership, stakeholder participation and institutional accountability. Their role should not be limited to producing persuasive messages. They should also understand how communication can improve relationships and encourage responsible organisational behaviour.
Ultimately, financial sustainability should not be measured only through profitability, savings or economic growth. It should also be assessed by whether people can live with dignity, whether employees experience fairness, whether customers can make informed decisions and whether institutions demonstrate behaviour that deserves public trust.
Sri Lanka’s challenge is therefore greater than producing a financially literate population. It is to develop an economic and institutional culture in which financial knowledge becomes a foundation for human security, social opportunity and collective wellbeing. That transformation requires a shared commitment from individuals, organisations and public institutions alike.
(Dr Manoj Jinadasa is a Senior Lecturer and Head of the Department of Mass Communication, Faculty of Social Sciences, University of Kelaniya, Sri Lanka. His academic and professional interests include communication, public relations, digital media, and social change)
Disclaimer: The views and opinions expressed in this article are those of the writer and do not necessarily reflect the official position of this publication.
Leave a comment