2019-12-20 | Banking Act Directions No. 12 of 2019Added · Updated
The Monetary Board of the Central Bank of Sri Lanka has designated four licensed banks as Domestic Systematically Important Banks and mandated Higher Loss Absorbency Requirements with immediate effect. Bank of Ceylon, Commercial Bank of Ceylon PLC, People's Bank, and Hatton National Bank PLC must now maintain Common Equity Tier 1 capital buffers ranging from 1.0% to 2.0% of their risk-weighted assets. This designation strengthens the financial resilience of Sri Lanka's core banking sector by imposing tiered capital buffers based on systemic importance.
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MONETARY BOARI)
CENTRAL BANK OF SRI LANKA
J0 December2019 BANKINGACT DIRECTIONS No. 12 of 2019 DOMESTIC SYSTEMICALLY IMPORTANT BANKS In terms of the powers conferred by Sections 19(7)(a) and 7 6G(7) of the Banking Act No. 30 of 1988, as amended, the Monetary Board has determined the following licensed banks as Domestic Systemically Important Banks (D-SIBs) and the applicable Higher Loss Absorbency Requirements (HLA) with immediate effect.
Table 01- Licensed Banks Determined as D-SIBs
Bucket Licensed Banks HLA Requirement (CETI as aoh of Risk-Weighted Assets) J 2.0 2 Bank of Ceylon Commercial Bank of Ceylon PLC 1.5 1 People's Bank Hatton National Bank PLC 1.0 fkuu.- Dr. Indrajit Coomaraswamy Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka
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Amended 1 time · last 2025-04-17
Source: Central Bank of Sri Lanka — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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