Regulatory Alerts2022-05-06 | Banking Act Directions No. 02 of 2022Restrictions on Discretionary Payments of Licensed Banks
The Monetary Board of the Central Bank of Sri Lanka has issued directions requiring licensed banks to defer cash dividends and profit repatriations until their 2022 financial statements are finalized and audited. To preserve liquidity and capital buffers amid prevailing macroeconomic conditions, the directives prohibit share buy-backs, restrict increases in management and board payments, and mandate strict oversight of non-essential capital expenditures. These restrictions apply immediately to all licensed commercial and specialized banks operating in Sri Lanka on a standalone basis until 31 December 2022.
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