Regulatory Alerts2018-11-30 | Banking Act Order No. 2 of 2018Banking (Off-Shore Banking Business Scheme) Order
The Monetary Board of the Central Bank of Sri Lanka issued Order No. 02 of 2018 to amend the Banking (Off-Shore Banking Scheme) Order, 2000 by inserting new clauses governing foreign currency borrowings. These provisions mandate that offshore units and their resident transactions comply with the specific terms outlined in Banking Act Directions No. 11 of 2018. The order, effective 30 November 2018, establishes the regulatory framework for licensed banks conducting offshore borrowing activities under Sections 23, 25, and 26 of the Banking Act.
30 November 2018 MONETARY BOARI) CENTRAL BANK OF SRI LANKA BANKING ACT ORDER No.02 of2018 BANKING (OFF.SHORE BANKING BUSINESS SCHEME) ORDER Order made by the Monetary Board of the Central Bank of Sri Lanka with the approval of the Minister, under Sections 23,25 and26 of the Banking Act, No. 30 of 1988 as amended. 1 . This Order may be cited as the Banking Act, Order No. 02 of 20 1 8 . 2. The following Clauses are inserted immediately after Clauses 2(2) and 4(3) of the Banking (Off-Shore Banking Scheme) Order, 2000, dated 7 Apr1l2000 and shall have effect as Clauses 2(3) and 4(4), respectively. 2.1 Authorised Business 2.2 Authorised Business with Residents 2(3) Foreign currency borrowings made under Section 25(b) of the Banking Act shall be undertaken subject to terms and conditions in Banking Act Directions No. 11 of 2018 dated 30 November 2018 on foreign curency borrowings by licensed banks. aU) An off-shore unit shall engage in borrowings with a resident specified in paragraph 4(1) subject to terms and conditions in Banking Act Directions No. 11 of 2018 dated 30 November 2018 on foreign curency borrowings by licensed banks. fukl,-*,- Dr. Indrajit Coomaraswamy Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka