Regulatory Alerts2025-07-17 | Banking Act Determination No. 01 of 2025Amendments to Banking Act Determination No. 04 of 2024 on Approved Securities for Related Party Accommodation
The regulator issued this determination to standardize reporting requirements for Letters of Credit granted by licensed banks to Sri Lankan government ministries, departments, and state-owned enterprises. Financial institutions must disclose outstanding limits in thousands of LKR alongside issuance and maturity dates, denominated currency, and borrower serial numbers. All accommodations require a valid Letter of Undertaking from the General Treasury to confirm adequate budgetary provisions and ensure compliance with Determination 2.1(a)(iv).
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