Regulatory Alerts2020-05-13 | Banking Act Directions No. 3 of 2020Restrictions on Discretionary Payments of Licensed Banks
The Monetary Board of the Central Bank of Sri Lanka has issued immediate directions restricting discretionary payments for all licensed banks until 31 December 2020 to safeguard liquidity amid the COVID-19 outbreak. Domestic licensed banks must withhold undistributed cash dividends for 2019 and interim dividends for 2020, while foreign-incorporated commercial banks are barred from repatriating undistributed profits for those same years. The directive further prohibits share buy-backs, increases to management and board allowances, and non-essential operational expenditures, while mandating extreme prudence for any capital spending.
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