Regulatory Alerts2020-07-16 | Finance Business Act Directions No. 6 of 2020Finance Business Act Directions No. 06 of 2020 on Business Expansion and Operations
The Monetary Board of the Central Bank of Sri Lanka issued Directions No. 06 of 2020 to regulate the business expansion and operational conduct of Licensed Finance Companies. These Directions mandate that LFCs obtain prior Board approval and submit an Annual Business Expansion Plan for any opening, closure, or relocation of branches and ATMs, while strictly prohibiting deposit mobilization at existing other outlets. Compliance is enforced through quarterly reporting, risk management obligations, and regulatory measures including penalties for non-compliance.
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