Regulatory Alerts2024-09-30 | Banking Act Direction No. 05 of 2024Corporate Governance Directions for Licensed Banks
The Central Bank of Sri Lanka has issued comprehensive Banking Act Directions mandating enhanced corporate governance frameworks for all licensed commercial and specialized banks. These Directions require boards to assume ultimate accountability for strategic oversight, risk appetite alignment, and robust three-line defence structures while enforcing strict director suitability criteria, including independence thresholds, gender quotas, age limits, and service tenure caps. Licensed banks must implement standardized board meeting protocols, transparent conflict-of-interest and whistleblowing policies, and publish annual corporate governance reports to ensure ongoing regulatory compliance by specified 2025–2027 deadlines.
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