Regulatory Alerts2024-10-01 | Banking Act Determination No. 04 of 2024Approved Securities for Accommodation Granted to Related Parties of Licensed Banks
The Central Bank of Sri Lanka issued Banking Act Determination No. 04 of 2024 to standardize the approved securities and loan-to-value caps for credit facilities extended to related parties of licensed banks. The regulation defines fourteen categories of related parties, including directors, close relations, substantial shareholders, and associated concerns, while specifying fifteen eligible security types such as government guarantees, cash deposits, gold, immovable property, and lease-backed trust certificates with LTV ratios ranging from 30 to 100 percent. Licensed banks must submit quarterly reports detailing these related-party transactions to the Director of Bank Supervision starting 31 December 2024, and prior determinations from 2005 and 2009 are hereby revoked.