Regulatory Alerts2026-02-16 | Banking (Special Provisions) Act Directions No. 01 of 2026Central Bank of Sri Lanka Directions on Recovery Plans for Finance Companies
The Central Bank of Sri Lanka mandates that all licensed Finance Companies prepare, maintain, and execute comprehensive Recovery Plans to proactively address severe financial stress events and ensure operational continuity. These plans must integrate with existing risk frameworks, clearly define recovery trigger indicators and credible execution options without relying on extraordinary public support, and establish robust governance oversight through designated board responsibilities. Finance Companies are required to submit their plans to the relevant supervisory departments by 31 December 2026, with ongoing annual reviews and regulatory oversight to rectify deficiencies or initiate enforcement actions.
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