Regulatory Alerts2014-06-05 | Banking Act Directions No. 1 of 2014Regulatory Framework on Valuation of Immovable Property for Licensed Commercial and Specialised Banks
The Monetary Board of the Central Bank of Sri Lanka issued Banking Act Directions No. 1 of 2014 to mandate all licensed commercial and specialised banks to establish board-approved policies for the prudent valuation of immovable property. The framework specifies strict eligibility criteria for internal and external valuers, defines valuation thresholds based on loan types, and mandates revaluation frequencies of three to four years depending on property classification. Banks must ensure external valuer independence, disclose valuation methodologies and results in annual reports, and align their practices with Sri Lanka Accounting Standards and other regulatory bodies.
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