Regulatory Alerts2015-03-31 | Banking Act Directions No. 1 of 2015Liquidity Coverage Ratio Under Basel III Standards for Licensed Commercial and Specialised Banks
The Monetary Board of the Central Bank of Sri Lanka has issued Banking Act Directions No. 01 of 2015 mandating Licensed Commercial and Specialised Banks to implement the Basel III Liquidity Coverage Ratio. The directive establishes a phased minimum LCR requirement scaling from 60 percent to 100 percent by January 2019, alongside mandatory monthly reporting and the development of internal liquidity monitoring systems. These measures ensure banks maintain sufficient high-quality liquid assets to withstand 30-day liquidity stress scenarios across both local currency and overall foreign currency operations.
Share