Regulatory Alerts2023-01-31 | GuidelineGuideline on Declaration of Dividends or Repatriation of Profits
The Central Bank of Sri Lanka’s Department of Supervision of Non-Bank Financial Institutions has issued a guideline requiring all licensed finance companies to obtain prior approval before declaring dividends or repatriating profits. The directive mandates that companies satisfy minimum prudential ratios, capital adequacy and core capital requirements adjusted for the proposed payouts, alongside board-approved stress tests covering liquidity, earnings, and capital adequacy. Effective for financial years commencing on or after 1 April 2023, the guideline supersedes previous regulations and ensures that finance companies maintain sufficient capital to absorb economic shocks while supporting customer credit needs.
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