Regulatory Alerts2020-02-14 | Finance Leasing Act Direction No. 1 of 2020Classification and Measurement of Credit Facilities
The Central Bank of Sri Lanka issued Directions No. 01 of 2020 to establish minimum requirements for the classification and measurement of credit facilities granted by Specialized Leasing Companies. These directions mandate the adoption of SLFRS 9 for expected credit loss measurement and define specific criteria for classifying loans as performing or non-performing based on past due periods and potential risk. The regulations also prescribe mandatory provisioning percentages for non-performing categories and set transitional provisions for implementation starting in April 2021.
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