Regulatory Alerts2016-01-18 | Finance Business Act Direction No. 1 of 2016Directions on Opening, Closure and Relocation of Business Places for Licensed Finance Companies
The Monetary Board of the Central Bank of Sri Lanka issued Directions under the Finance Business Act requiring Licensed Finance Companies to obtain prior Board approval before opening, closing, or relocating any business place. The regulations mandate that LFCs submit detailed applications including economic feasibility studies for new branches and notify the Director at least 45 days in advance for closures or relocations. Additionally, deposit mobilization is restricted to branch offices, and non-compliance constitutes an offence subject to sanctions under the Act.
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