Regulatory Alerts2021-12-31 | Finance Business Act Directions No.06 of 2021Assessment of Fitness and Propriety of Key Responsible Persons
The Monetary Board of the Central Bank of Sri Lanka issued Directions No. 06 of 2021 requiring key responsible persons of licensed finance companies to secure prior regulatory approval and undergo standardized fitness and propriety assessments. The framework mandates comprehensive evaluations of honesty, competency, financial soundness, and background checks, with licensed finance companies submitting detailed affidavits and performance records within strict timelines for new appointments, annual reviews, and executive transitions. Effective 1 April 2022, these directions supersede prior regulations and establish a structured approval process with a formal appeal mechanism to ensure robust corporate governance and sector stability.
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