Regulatory Alerts2016-10-27 | Direction No. 7 of 2016Regulatory Framework for Accommodations under the Microfinance Act
The Monetary Board of the Central Bank of Sri Lanka issued Direction No. 07 of 2016 to establish maximum accommodation limits for Licensed Microfinance Companies based on their core capital. The regulation restricts credit exposure to single entities, related parties, and Community Based Organisations while mandating specific provisioning for non-performing assets. Compliance is enforced through quarterly reporting requirements and prohibitions on dividend payments for institutions that fail to rectify contraventions.
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