Regulatory Alerts2019-04-26 | Circular No. 06 of 2019Supplement to Circular No. 04 of 2018 on the Adoption of SLFRS 9 in Licensed Banks
The Central Bank of Sri Lanka has issued interim measures for licensed banks to facilitate the adoption of SLFRS 9 during a transitional period ending June 30, 2020. Banks may extend the rebuttable presumption for significant credit risk increases from thirty to sixty days and exempt restructured SME loans up to Rs. 25 million, provided internal board-approved procedures are followed. The directive further mandates portfolio back-testing, expected loss provision modeling for SME segments, and the development of short-term revolving funding products to support credit availability.
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