Regulatory Alerts2021-03-31 | Finance Leasing Act Directions No. 3 of 2021Amendments to Directions on Liquid Assets
The Central Bank of Sri Lanka has amended its Finance Leasing Act Direction No. 06 of 2020 to extend the validity period for liquid asset requirements by three months until 30 June 2021. This extension aims to alleviate liquidity stress on Scheduled Leasing Companies caused by the prolonged impact of the second COVID-19 wave. Upon expiration, these entities must ensure continued compliance with the underlying liquid asset rules established under Direction No. 04 of 2012.
CENTRAL BANK OF SRI LANKA 31 March 2021 FINANCE LEASING ACT DIRECTIONS No. 03 of 2021
AMENDMENTS TO DIRECTIONS ON LIQUID ASSETS
Issued under Section 34 of the Finance Leasing Act, No.56 of 2000.
The Director of the Department of Supervision of Non-Bank Financial Institutions issues the following amendments to Finance Leasing Act (Amendments to Direction on Liquid Assets) Direction No.06 of 2020, considering the challenging operating environment due to the prolonged impact of the second wave of the COVID-19 pandemic.
Accordingly, the following will replace Direction 2 of the Finance Leasing Act (Amendments to Direction Liquid Assets) Direction No.06 of 2020.
- Validity Period
2.1 The Directions shall be effective for an extended period of three (3) months until 30.06.2021, in order to facilitate the SLCs to overcome the stress on liquidity due to the present challenging environment.
2.2 SLCs shall take necessary measures to ensure that that the liquid assets requirement in terms of the Finance Leasing (Liquid Assets) Direction No. 04 of 2012 are complied on the expiration of the extension given in 2.1 above.
J D S J Nanayakkara Director, Department of Supervision of Non-bank Financial Institutions, Central Bank of Sri Lanka