Regulatory Alerts2025-04-17 | Central Bank of Sri Lanka Act Directions No. 01 of 2025Directions to Licensed Banks on Domestic Systemically Important Banks
The Central Bank of Sri Lanka has designated five licensed banks as Domestic Systemically Important Banks (D-SIBs) under the Criteria Rules No. 01 of 2025. These institutions are allocated to risk buckets ranging from one to three based on systemic importance scores, with the Bank of Ceylon and People’s Bank placed in buckets two and one respectively. The designation takes effect on 17 April 2025, requiring the listed banks to adhere to enhanced macroprudential capital and liquidity buffers commensurate with their assigned buckets.
CENTRAL BANK OF SRI LANKA 17 April 2025 CENTRAL BANK OF SRI LANKA ACT DIRECTIONS No. 01 of 2025
CENTRAL BANK OF SRI LANKA ACT DIRECTIONS TO LICENSED BANKS ON DOMESTIC SYSTEMICALLY IMPORTANT BANKS
In terms of section 105(1) read with 64(1)(d) of the Central Bank of Sri Lanka Act, No. 16 of 2023, the Central Bank of Sri Lanka, as the macroprudential authority of Sri Lanka, hereby issues Directions to Licensed Commercial Banks and Licensed Specialised Banks (herein after referred to as “licensed banks”) designating Domestic Systemically Important Banks (D-SIBs) in Sri Lanka, as per the criteria prescribed by Rules No. 01 of 2025 issued under and in terms of section 68(1) of the said Act.
- The following licensed banks shall be designated as D-SIBs of Sri Lanka together with the corresponding buckets:
Table 1: Designated D-SIBs with the corresponding buckets
| D-SIBs | Bucket |
|---|---|
| - | 3 |
| Bank of Ceylon | 2 |
| Commercial Bank of Ceylon PLC | |
| People’s Bank | 1 |
| Hatton National Bank PLC | |
| Sampath Bank PLC |
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These Directions shall come into effect from 17 April 2025.
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For the purposes of these Directions:
(i) “Bucket” shall have the same meaning as set out in Section 2.10 of the Schedule of the Criteria used to Designate Domestic Systemically Important Banks Rules No. 01 of 2025, where D-SIBs are allocated into equally sized buckets based on their scores of systemic importance.
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CENTRAL BANK OF SRI LANKA 17 April 2025 CENTRAL BANK OF SRI LANKA ACT DIRECTIONS No. 01 of 2025
(ii) “Rules No. 01 of 2025” shall mean the Central Bank of Sri Lanka Rules on Criteria used to Designate Domestic Systemically Important Banks.
[Signature] Dr. P Nandalal Weerasinghe Chairperson of the Governing Board and Governor of the Central Bank of Sri Lanka
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