Regulatory Alerts2016-10-27 | Direction No. 1 of 2016Minimum Core Capital Directions under the Microfinance Act
The Central Bank of Sri Lanka issued Directions No. 01 of 2016 under the Microfinance Act to establish minimum core capital requirements for Licensed Microfinance Companies. Companies applying for a license on or before January 15, 2018, must maintain Rs. 100 million initially and Rs. 150 million from January 15, 2019, while new applicants must maintain Rs. 150 million immediately. Non-compliant entities face caps on deposit liabilities and debt, as well as a prohibition on paying dividends until the minimum capital requirement is met.
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