Regulatory Alerts2024-06-13 | Banking Act Determination No. 01 of 2024Statutory Liquidity Ratios of Licensed Banks
The Central Bank of Sri Lanka issued Banking Act Determination No. 01 of 2024, mandating all licensed commercial and specialised banks to maintain 100% Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) at all times in alignment with Basel III standards. Each institution must submit monthly LCR and quarterly NSFR returns via the Web-based Off-site Surveillance System while continuously applying four core liquidity monitoring tools: contractual maturity mismatch, funding concentration, significant foreign currency LCR, and available unencumbered assets. This framework supersedes previous Statutory Liquid Assets Ratio rules by revoking three 2015–2018 Directions and takes effect from the appointed date of the Banking (Amendment) Act No. 24 of 2024.