Regulatory Alerts2022-06-22 | Banking Act Direction No. 05 of 2022Sustainable Finance Activities of Licensed Banks
The Central Bank of Sri Lanka issued Banking Act Directions No. 05 of 2022 to require all licensed banks to systematically integrate sustainable finance initiatives into their business models. Banks must establish board-approved governance policies, align lending with the national Green Finance Taxonomy across priority sectors, and embed ESG risks into capital assessments and decision-making. The directive mandates quarterly reporting, annual sustainability disclosures using recognized frameworks, and continuous capacity building through staff training and climate stress testing.
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