CENTRAL BANK OF SRI LANKA

Capital / Liquidity

Sri Lanka to Enact New Banking Act in 2021

By Editors | 10/01/2020

The new Banking Act will streamline the licensing process, branch approvals, and adopt a proportionality framework for banking regulations, among other changes.

Sri Lanka to Penalise 8 Banks for Failing to Lower Lending Rates

By Editors | 07/01/2020

Eight banks will be penalised for failure to lower lending rates by a 27 December 2019 deadline set by the central bank in September last year, intended to ensure the public benefits from monetary policy decisions.

Sri Lanka to Introduce Legislation to Regulate Moneylenders

By Editors | 11/12/2019

Moneylenders do not currently fall under any licensing or regulatory regime in Sri Lanka unless they accept deposits.

AML / KYC

Sri Lanka to Develop Shared KYC Facility Using Blockchain

By Editors | 06/12/2019

The CBSL is inviting software development companies to apply (by 31 December) to help in the development of a proof-of-concept of a shared KYC facility.

AML / KYC

FATF Removes Sri Lanka from ‘Grey List’; Pakistan to Remain

By Editors | 23/10/2019

Sri Lanka has made “significant progress” to address strategic AML/CFT deficiencies; Pakistan has only largely addressed 5 of 27 action items and has failed to meet agreed deadlines.

Capital / Liquidity

Sri Lanka Cuts Bank Reserve Requirements

By Editors | 26/02/2019

To boost credit growth, the Central Bank of Sri Lanka has cut the statutory reserve ratio for commercial banks from 6 to 5 percent, starting in March.

Capital / Liquidity

Sri Lanka Makes Credit Ratings Compulsory for Finance Companies

By Editors | 13/04/2018

Licensed finance companies are required to enter into agreement with reputed credit agencies to obtain ratings by 30 April.

AML / KYC

Sri Lanka Investigating “Suspicious” Chinese-held Bank Accounts

By Garima Chitkara | 02/04/2018

Sri Lanka’s financial crimes unit is investigating suspicious transactions originating from three Chinese-held accounts with LKR957 million.

Enforcement

Sri Lanka to Bail Out Finance Company Depositors

By Editors | 09/03/2018

The central bank has cancelled troubled finance company CIFL’s licence and doubled the maximum deposit insurance payout for each depositor.