Regulatory Alerts2019-08-29 | Banking Act Directions No. 6 of 2019Market Conduct and Practices for Treasury Operations of Licensed Banks in Sri Lanka
The Monetary Board of the Central Bank of Sri Lanka issued Banking Act Directions No. 06 of 2019 to enhance market conduct and practices for treasury operations of licensed commercial and specialized banks. These directions aim to strengthen market risk management systems, improve bank soundness, and bolster financial system stability by mandating comprehensive internal policies, a Board-approved code of conduct, and robust controls for all treasury functions and authorized personnel. They detail ethical standards, confidentiality requirements, rules for personal account dealing, and strict prohibitions against manipulative conduct, collusion, and transactions that undermine market integrity, alongside requirements for call recording, record keeping, and risk monitoring.