Regulatory Alerts2020-08-20 | Finance Leasing Act Directions No. 5 of 2020Business Expansion and Operations
The Central Bank of Sri Lanka issued Directions No. 05 of 2020 to standardize the business expansion and operational framework for Specialised Leasing Companies (SLCs). The directive mandates that SLCs conduct leasing activities exclusively through authorized branches, collection centers, and affiliated mobile banking units, requiring prior Board approval and the annual submission of a detailed Business Expansion Plan. SLCs must maintain specified capital, liquidity, and risk management standards while adhering to standardized operating hours and quarterly reporting, with the Director retaining authority to enforce restrictions or monetary penalties for non-compliance.
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