Regulatory Alerts2024-10-23 | GuidelineGuidelines on Remuneration Policies and Disclosure Requirements
The Central Bank of Sri Lanka mandates all licensed finance companies to adopt structured remuneration policies for directors and senior management effective from the 2025/26 financial year. The guidelines require a balanced pay mix determined by a financial and non-financial performance matrix, while prohibiting executive directors from receiving sitting fees and restricting non-executive directors to fixed allowances. Companies must comprehensively disclose all monetary and non-monetary compensation components in their annual reports, providing clear breakdowns that distinguish executive from non-executive directors to ensure stakeholder transparency.
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