Regulatory Alerts2019-04-26 | Banking Act Directions No. 3 of 2019Central Bank of Sri Lanka Directions on SME Definitions under Basel III Capital and Liquidity Standards
The Central Bank of Sri Lanka issued Banking Act Directions No. 03 of 2019 to amend qualifying criteria for Small and Medium Enterprises under Basel III capital and liquidity frameworks. The directive establishes a uniform definition requiring SMEs to have a maximum credit exposure and annual turnover not exceeding Rs. 250 million and Rs. 750 million, respectively. Banks are mandated to implement board-approved internal mechanisms to verify SME annual turnover for compliance with Capital Requirements, Liquidity Coverage Ratio, and Net Stable Funding Ratio regulations.
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