Regulatory Alerts2022-11-29 | Letter to CEOs of LFCsGuidelines on Sustainable Finance Activities
The Central Bank of Sri Lanka has issued guidelines requiring all licensed finance companies to implement a governance and risk management framework for sustainable finance activities. The regulations mandate the adoption of the Sri Lanka Green Finance Taxonomy to classify investments across priority sectors, integrate environmental, social, and governance risks into overall risk management, and establish board oversight with clear roles and annual policy reviews. Furthermore, licensed finance companies must allocate adequate resources, develop staff capacity, and disclose detailed environmental and social impacts alongside sustainable fund allocations in their annual reports.
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