Regulatory Alerts2024-11-29 | Finance Business Act Directions No.04 of 2024Central Bank of Sri Lanka Directions on Operational Risk Management
The Central Bank of Sri Lanka issued Finance Business Act Directions No. 04 of 2024 requiring licensed finance companies to establish a comprehensive operational risk management framework. The directive mandates robust governance structures, documented policies, and standardized assessment tools to systematically identify, monitor, and mitigate risks arising from internal processes, personnel, systems, or external events. Compliance is phased by asset size with implementation starting in January 2026 for entities exceeding Rs. 100 billion and January 2027 for smaller firms, alongside mandatory quarterly risk reporting and periodic loss event submissions via the FinNet system.
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