Regulatory Alerts2026-08-28 | Banking Act Determination No. 01 of 2026Added
Approved Securities for Accommodation Granted to Related Parties of Licensed Banks
The Central Bank of Sri Lanka mandates that licensed banks obtain specific approved securities when granting accommodation to related parties, including directors, close relations, and concerns with substantial interests. The regulation defines acceptable collateral such as government guarantees, cash deposits, gold, immovable property, and corporate debentures, imposing loan-to-value caps ranging from 30 percent to 100 percent depending on the asset type. Licensed banks must implement these requirements effective 01 September 2026, simultaneously revoking prior determinations from 2024 and 2025. Additionally, banks are required to submit quarterly details of related party transactions via FinNet returns starting 30 September 2026.