Regulatory Alerts2024-10-03 | Gazette No. 2404/33Limits for Accommodation Granted to Related Parties of Licensed Banks
The Central Bank of Sri Lanka has issued an order defining related party categories and establishing specific caps on accommodation granted by licensed commercial and specialized banks. The regulation sets limits of up to Rs. 20 million for individuals, up to Rs. 2 million for credit cards, and between 10% and 15% of Tier 1 capital for corporate concerns. Any accommodation exceeding these thresholds must be secured by approved cash or near-cash collateral, effectively replacing the previous 2005 directive.
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