Regulatory Alerts2024-06-14 | Banking Act Direction No. 02 of 2024Off-Shore Banking Business of Licensed Commercial Banks
The Central Bank of Sri Lanka issued Banking Act Directions No. 02 of 2024 to eliminate the demarcation between domestic and off-shore banking units, designating off-shore banking as a permissible activity for licensed commercial banks. Licensed commercial banks must conduct these operations in designated foreign currencies for eligible non-resident and approved resident customers, permitting deposits of at least ten thousand US dollars, borrowings, accommodations, and contingent liabilities. The Directions, effective June 15, 2024, mandate prudent accommodation policies, quarterly CBSL reporting, and the revocation of specific foreign currency banking unit returns while allowing equity and profits to be retained in foreign currencies.
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