Regulatory Alerts2020-07-16 | Banking Act Direction No. 6 of 2020Extraordinary Regulatory Measures Amidst COVID-19
The Central Bank of Sri Lanka has issued Banking Act Directions requiring licensed commercial banks to classify government-backed construction sector facilities as liquid assets, performing loans, and zero-risk-weighted capital mitigants. These extraordinary measures remain effective until 31 December 2020 and apply a 10% haircut to ensure accurate liquidity and capital adequacy computations. By integrating the Saubagya credit guarantee scheme, the directives directly support contractor payments and broader economic recovery amid the pandemic.
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