Regulatory Alerts2020-07-16 | Banking Act Direction No. 7 of 2020Amendments to Banking Act Directions No. 01 of 2016 on Capital Requirements under Basel III for Licensed Commercial Banks and Licensed Specialized Banks
The Monetary Board of the Central Bank of Sri Lanka issued Banking Act Directions No. 07 of 2020 to amend the Basel III capital framework for licensed commercial and specialized banks. This directive modifies a specific web-based return code to update the eligibility criteria for small and medium enterprises by capping their annual turnover at Rs. 1 billion. The amendment operates under the statutory powers of Sections 19(7)(a) and 76G(7) of the Banking Act No. 30 of 1988, ensuring precise capital ratio calculations for regulated institutions.
MONETARY BOARD CENTRAL BANK OF SRI LANKA 16 July 2020 BANKING ACT DIRECTIONS No. 07 of 2020 AMENDMENTS TO BANKING ACT DIRECTIONS NO. 01 OF 2016 ON CAPITAL REQUIREMENTS UNDER BASEL III FOR LICENSED COMMERCIAL BANKS AND LICENSED SPECIALISED BANKS In terms of powers conferred by Sections l9(7)(a) and 76G(7) of the Banking Act No. 30 of 1988, the Monetary Board is empowered to determine the minimum capital ratios for licensed commercial banks and licensed specialised banks, hereinafter referred to as licensed banks. Accordingly, Section d) i) II of web-based return code 20.3.1.8.1.0 referred to in Part III (A) of the Banking Act Directions No. 01 of 2016 on Capital Requirements under Basel III for Licensed Banks is amended as follows: The annual turnover of the SME shall not exceed Rs. 1 billion