Regulatory Alerts2018-01-09 | Regulations No. 01 of 2018Amendments to the Sri Lanka Deposit Insurance Scheme Regulations No. 1 of 2010
The Monetary Board of the Central Bank of Sri Lanka issued these regulations to amend the principal deposit insurance framework by redefining insured liabilities to include equity-converted shares while excluding borrowing instruments. The amendments establish a dedicated Deposit Insurance Unit within the Resolution and Enforcement Department and cap depositor compensation at Rs. 600,000 or its foreign currency equivalent. These regulatory changes take effect on January 1, 2018, updating the operational and financial parameters of the national deposit insurance scheme.
I fldgi: (I) fPoh – Y%S ,xld m%cd;dka;%sl iudcjd§ ckrcfha w;s úfYI .eiÜ m;%h – 2018'01'09 PART I: SEC. (I) – GAZETTE EXTRAORDINARY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA – 09.01.2018 1A Y%S ,xld m%cd;dka;%sl iudcjd§ ckrcfha .eiÜ m;%h The Gazette of the Democratic Socialist Republic of Sri Lanka w;s úfYI EXTRAORDINARY (Published by Authority) PART I: SECTION (I) – GENERAL Central Bank of Sri Lanka Notices wxl 2053$16 – 2018 ckjdß ui 09 jeks wÕyrejdod – 2018'01'09 No. 2053/16 – TUESDAY, JANUARY 09, 2018 THE MONETARY LAW ACT REGULATIONS made by the Monetary Board under Section 32E of the Monetary Law Act, (Chapter 422). Dr. INDRAJIT COOMARASWAMY, Chairman, Monetary Board. Colombo, 05th January, 2018. Sri Lanka Deposit Insurance and Liquidity Support Scheme Regulations Amendment to the Sri Lanka Deposit Insurance Scheme Regulations, No. 1 of 2010
- Citation 1.1 These Regulations shall be cited as Sri Lanka Deposit Insurance and Liquidity Support Scheme Regulations, No. 1 of 2018.
- Amendment to the 2.1 Sri Lanka Deposit Insurance Scheme Regulations, No. 1 of 2010 published in Gazette principal regulation Extraordinary No. 1673/11 of 28th September, 2010 is hereby amended as follows:– Substitution for 2.2 In Regulation 5 thereof by the repeal of paragraph 5.1 of that regulation and the substitution Regulation 5.1 of the following paragraph: “5.1 Deposits to be insured shall include demand, time and savings deposit liabilities of member institutions, value of the shares of shareholders who were initially deposit holders, whose deposits were converted into equity under the directions of the Monetary Board in 2010 and 2011 as part of the Business restructuring plans implemented prior to 01.01.2012 and exclude all borrowing instruments.” This Gazette Extraordinary can be downloaded from www.documents.gov.lk 1A – G26913 – 27 (2018/01)
2A I fldgi: (I) fPoh – Y%S ,xld m%cd;dka;%sl iudcjd§ ckrcfha w;s úfYI .eiÜ m;%h – 2018'01'09 PART I: SEC. (I) – GAZETTE EXTRAORDINARY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA – 09.01.2018 For this purpose, the value of shares of shareholders whose deposits were converted into equity, shall be the value of deposit/s that had been convered into shares. Substitution for 2.3 In Regulation 9 thereof by the repeal of paragraph 9.6 of that regulation and the substitution Regulation 9.6 of the following paragraph: “9.6 The amount of compensation payable to a depositor shall be limited to the total insured deposits computed as above, subject to a maximum of Rs. 600,000 or its equivalent in the case of foreign currency deposits, if such amount exceeds Rs. 600,000.” Substitution for 2.4 In Regulation 10 thereof by the repeal of paragraph 10.1 of that regulation and the Regulation 10.1 substitution of the following paragraph: “10.1 There shall be an established Deposit Insurance Unit in the Resolution and Enforcement Department which shall be responsible for the operational and management arrangements, under the insturctions and supervision of the Director of Resolution and Enforcement in terms of Directions/Regulations and policies as approved by the Monetary Board from time to time.” 4. Effective date 3.1 These amendments shall come into effect from 01st January, 2018. 01 – 632 PRINTED AT THE DEPARTMENT OF GOVERNMENT PRINTING, SRI LANKA