Regulatory Alerts2020-09-08 | Banking Act Direction No. 8 of 2020Amendment to Banking Act Directions on Ownership of Issued Capital Carrying Voting Rights for Licensed Commercial Banks
The Monetary Board of the Central Bank of Sri Lanka issued Direction No. 08 of 2020 to amend the maximum ownership limits for shares carrying voting rights in licensed commercial banks. The revised regulation caps general shareholder stakes at fifteen percent, while granting multilateral financial organizations a temporary twenty percent limit that must be reduced to fifteen percent within ten years. These thresholds apply on a case-by-case basis subject to statutory conditions, thereby facilitating targeted institutional investment in the domestic banking sector.
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