Regulatory Alerts2026-05-27 | Banking Act Direction No. 02 of 2026Amendments to Basel III Capital Requirements Directions for Licensed Commercial and Specialised Banks
The Central Bank of Sri Lanka has amended its Basel III capital requirements directions for licensed commercial and specialised banks, effective 1 September 2026. The updated schedule establishes tiered risk weights for gold-secured claims based on loan-to-value ratios, assigning ten percent to loans with ratios of 70 percent or less, forty percent to those between 70 and 100 percent, and one hundred percent to loans exceeding 100 percent. Licensed banks must apply these revised risk weights when computing their risk-weighted amounts for credit risk under the updated web-based return codes.
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