Regulatory Alerts2022-11-18 | Banking Act Direction No. 08 of 2022Regulatory Requirements on Liquidity Ratios
The Monetary Board of the Central Bank of Sri Lanka has issued Banking Act Directions requiring licensed commercial and specialised banks to maintain a Statutory Liquid Assets Ratio of at least 20 percent of total adjusted liabilities on a consolidated basis. While separate reporting for Domestic and Off-shore Banking Units continues, the mandatory maintenance of distinct SLAR requirements for these units is temporarily deferred until further notice. Additionally, licensed banks are permitted to maintain Liquidity Coverage and Net Stable Funding Ratios at a minimum of 90 percent until December 31, 2022 to accommodate short-term liquidity adjustments amid prevailing macroeconomic conditions.
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