Regulatory Alerts2023-02-02 | Letter to CEOs of LFCsRemoval of ICRA Lanka Ltd. as an acceptable Credit Rating Agency
The Central Bank of Sri Lanka has removed ICRA Lanka Ltd. as an acceptable credit rating agency following the entity's business cessation effective 31 January 2023. Licensed finance companies that previously relied on ICRA Lanka Ltd. must promptly execute fresh agreements with alternative approved rating agencies to maintain regulatory compliance. This directive takes effect on 2 February 2023 and operates in conjunction with existing credit rating circulars to ensure uninterrupted oversight of client ratings.
ශ්රී ලංකා මහ බැංකුව இலங்கை மத்திய வங்கி CENTRAL BANK OF SRI LANKA
DEPARTMENT OF SUPERVISION OF NON-BANK FINANCIAL INSTITUTIONS අංක 30, ජනාධිපති මාවත, කොළඹ 01, ශ්රී ලංකාව இல. 30, சனாதிபதி மாவத்தை, கொழும்பு - 01, இலங்கை No. 30, Janadhipathi Mawatha, Colombo 01, Sri Lanka
Ref: 24/10/001/0019/005
2nd February 2023
Chief Executive Officers Licensed Finance Companies
Dear Sir/Madam
Removal of ICRA Lanka Ltd. as an acceptable Credit Rating Agency
This refers to Circular No.01 of 2018 on Credit Ratings, dated 13.03.2018.
As informed by the Securities and Exchange Commission of Sri Lanka to the undersigned, ICRA Lanka Ltd. ceases its business operations in Sri Lanka with effect from 31.01.2023 and accordingly the ratings issued to its clients under relevant agreements are also withdrawn with effect from the same date.
Consequently, the undersigned wishes to inform the LFCs, which have obtained services from ICRA Lanka Ltd., to enter into fresh agreements with another acceptable credit rating agency, at the earliest, to comply with the applicable regulations to LFCs and keep the undersigned informed of such arrangements.
This letter will be effective from 02.02.2023 and should be read together with Circular No.01 of 2018 on Credit Ratings, and Circular No.08 of 2021 on Recognition of Lanka Rating Agency Ltd. as an acceptable Credit Rating Agency.
Yours faithfully,
(Mrs.) R M C H K Jayasinghe Director
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