Regulatory Alerts2021-12-31 | Finance Business Act Directions No.05 of 2021Corporate Governance Direction for Licensed Finance Companies
The Monetary Board of the Central Bank of Sri Lanka issued Finance Business Act Direction No. 05 of 2021 to standardize and strengthen corporate governance across all licensed finance companies. The directive mandates a board of seven to thirteen directors with strict independence criteria, term limits, and cooling-off periods, while clearly delineating the distinct operational responsibilities of the chairperson and chief executive officer. It further establishes rigorous governance protocols, including a minimum of twelve annual board meetings with specific quorum and attendance rules, standardized fitness assessments for directors, and structured delegation of authority to senior management.
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