Regulatory Alerts2018-09-04 | Direction No. 7 of 2018Central Bank of Sri Lanka Directions on Outsourcing of Business Operations
The Monetary Board of the Central Bank of Sri Lanka issued Directions No. 07 of 2018 to regulate the outsourcing of business operations by Licensed Finance Companies. The document prohibits the outsourcing of core functions such as deposit mobilization, risk management, and strategic decision-making while imposing strict governance, contractual, and reporting requirements for permissible activities. It establishes specific conditions for outsourcing internal audit and IT functions and mandates that Boards and Senior Management maintain effective oversight and risk management frameworks.
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