Regulatory Alerts2019-12-20 | Banking Act Directions No. 12 of 2019Domestic Systematically Important Banks
The Monetary Board of the Central Bank of Sri Lanka has designated four licensed banks as Domestic Systematically Important Banks and mandated Higher Loss Absorbency Requirements with immediate effect. Bank of Ceylon, Commercial Bank of Ceylon PLC, People's Bank, and Hatton National Bank PLC must now maintain Common Equity Tier 1 capital buffers ranging from 1.0% to 2.0% of their risk-weighted assets. This designation strengthens the financial resilience of Sri Lanka's core banking sector by imposing tiered capital buffers based on systemic importance.
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