Regulatory Alerts2020-09-30 | Finance Business Act Directions No. 7 of 2020Amendments to Directions on Liquid Assets
The Monetary Board of the Central Bank of Sri Lanka issued amendments to the Directions on Liquid Assets for Licensed Finance Companies to address liquidity stress caused by the COVID-19 pandemic. The directive mandates that these companies maintain minimum liquid asset holdings of six percent for time and non-transferable certificate deposits, ten percent for savings deposits, and five percent for total outstanding borrowings. These revised requirements are effective from 1 October 2020 until 31 March 2021 and revoke the previous Finance Business Act Direction No. 02 of 2020.
Share