Regulatory Alerts2021-07-13 | Banking Act Direction No. 11 of 2021Restrictions on Discretionary Payments of Licensed Banks
The Monetary Board of the Central Bank of Sri Lanka requires all licensed banks to defer cash dividends and profit repatriation until their 2021 financial statements are finalized and audited. Until 31 December 2021, these institutions must also halt share buy-backs, limit increases in management and board allowances, and restrict non-essential expenditures while maintaining adequate capital buffers. Implemented on 1 July 2021, these measures preserve liquidity and ensure banking system soundness amid the ongoing COVID-19 pandemic.
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