Regulatory Alerts2016-10-27 | Direction No. 4 of 2016Maintenance of Minimum Liquid Assets Ratio
The Central Bank of Sri Lanka issued Direction No. 04 of 2016 under the Microfinance Act to mandate that Licensed Microfinance Companies maintain a minimum average monthly liquid assets ratio of 15% against total monthly deposit liabilities. The directive specifies eligible liquid assets, including cash, bank balances, and short-term government securities, while establishing a penalty of 0.1% per day or Rs. 25,000 for liquidity deficiencies. Compliance requires monthly reporting to the Department of Supervision of Microfinance Institutions within fifteen days of the month's end.
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