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).
[Limited Sharing] # Bank Name: Reporting Date: Limit Outstanding as at the Reporting Date Limit Outstanding as at the Reporting Date Issuance Date of the Letter of Undertaking (dd/mm/yyyy) Expiry Date of the Letter of Undertaking (dd/mm/yyyy) Annex I Purpose of Opening LC Banking Act Determination No. 04 of 2024 on Approved Securities for Accommodation Granted to Related Parties of Licensed Banks All amounts to be reported in LKR '000 Serial No. Name of the Borrower Details of Accommodation Granted as Letters of Credit (LCs) on behalf of Ministries & Departments of the Government of Sri Lanka and State Owned Enterprises with a Letter of Undertaking issued by the General Treasury As per Determination 2.1(a)(iv) (Quarter ended as at) DD-MM-YYYY Denominated Currency Date of Opening of LC (dd/mm/yyyy) Date of maturity of LC (dd/mm/yyyy) Amount in the Denominated Currency LKR Equivalent Amount Details of Letter of Undertaking providing assurance of adequate budgetary provisions