Regulatory Alerts2014-06-26 | Banking Act Directions No.2 of 2014Amendment to Banking Act Directions No. 7 of 2007 on Maximum Amount of Accommodation
The Monetary Board of the Central Bank of Sri Lanka issued Banking Act Directions No. 2 of 2014 to revise maximum accommodation limits for licensed commercial banks by replacing Direction 5. The amended rule caps exposure to specific customer categories at 55 percent of total outstanding accommodation when their individual lending exceeds 15 percent of the bank's capital base. The calculation explicitly excludes government exposure, certain Monetary Board-approved accommodations, and direct head office or foreign branch funding for foreign-incorporated banks.
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