Regulatory Alerts2024-11-21 | Finance Business Act Directions No.03 of 2024Deposit Solicitation by Finance Companies
The Central Bank of Sri Lanka issued directions requiring licensed Finance Companies to adhere to standardized deposit solicitation conditions, including internal controls, accurate advertising, and cost-neutral incentive schemes. The regulations mandate that advertisements clearly display nominal and effective interest rates alongside current credit ratings, while prohibiting distorted lottery or introducer schemes that disadvantage depositors. Effective immediately, these directives replace five prior regulations and empower supervisors to enforce interest rate ceilings, real-time transaction proofs, and product revisions to safeguard depositor interests.
Share