Regulatory Alerts2026-05-27 | Finance Business Act Directions No.03 of 2026Amendments to Capital Adequacy Requirements
The Governing Board of the Central Bank of Sri Lanka issued Finance Business Act Directions No. 03 of 2026 to update capital adequacy calculations for financial institutions. The directive replaces the risk-weighted asset computation for gold-secured retail claims, applying 10 percent, 40 percent, and 100 percent risk weights to loans with loan-to-value ratios of 70 percent or less, between 70 and 100 percent, and over 100 percent, respectively. These revised risk weight thresholds become effective on September 1, 2026.
Share