Regulatory Alerts2021-06-16 | Banking Act Direction No. 9 of 2021Recovery Plans for Licensed Commercial Banks and Licensed Specialised Banks
The Monetary Board of the Central Bank of Sri Lanka has issued Banking Act Directions No. 09 of 2021 mandating licensed commercial and specialised banks to establish comprehensive Recovery Plans (RCPs). These plans must clearly define critical functions, quantitative and qualitative recovery triggers, credible resolution options, and robust governance structures to ensure continuous operations during financial stress. Commencing in 2022, banks with assets exceeding Rs. 1 trillion are required to submit their RCPs annually by 30 June, while smaller institutions must maintain them from that date onward.
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